For the year ended 30 June 2024
ANNUAL
FINANCIAL
STATEMENTS
2024
GOLDPLAT PLC 2024
Index
Page
Introduction
1 - 2
Chairman's Statement
3
CEO Report
4 - 7
CFO Report
8 - 10
The Board
12 - 13
Directors' Report
14 - 17
Statement of Directors' Responsibilities
18
Strategic Report
19 - 30
Environmental and Social Report
31 - 34
Sustainability Index
35
Independent Auditor's Report
36 - 41
Statements of Financial Position -
Group and Company
42 - 43
Statements of Profit or Loss and
Other Comprehensive Income - Group
44
Statements of Changes in Equity - Group
45
Statements of Changes in Equity - Company
46
Statements of Cash Flows - Group
and Company
47
Accounting Policies
48 - 56
Notes to the Consolidated and
Separate Financial Statements
56 - 76
General Information
77
Our Integrated Report provides insights into the
material matters, strategy, performance, outlook
and governance of Goldplat plc for the year ended
30 June 2024. This report is intended for current and
prospective investors and stakeholders interested in
our Group.
Our report has been prepared to provide balanced,
reliable, transparent and relevant disclosures to our
providers of financial capital and other interested
stakeholders. The annual report houses our material
financial, sustainability and operational information
within the framework of integrated thinking.
We have continued to incrementally and partially
embrace the principles of the Integrated Reporting
Framework as well as further developing our reporting
processes in order to ultimately align with global
sustainability reporting standards in preparing our
annual report. We will continue to enhance our
integrated and sustainability reporting disclosures as
we further develop and align the underlying reporting
processes.
About this report
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
1
Who we are
Goldplat is an AIM-quoted mining services company,
incorporated in the United Kingdom, specialising in the
recovery of gold and other precious metals from by-products,
contaminated soil and other precious metal material sourced
from mining and other industries.
Goldplat has a pivotal role to play in the circular economy that
extends the extraction of minerals to reprocessing of what
would typically be categorised as waste materials. We add
another dimension to the circular economy, through focusing on
maximizing the creation of value from mining activities.
Goldplat has market leading operations in South Africa, Ghana
and a new operation in South America, all focused on providing
an economic method for mines to dispose of and realise value
from waste materials while at the same time adhering to their
environmental obligations. The group has plans to expand its
recovery operation in South America through the development
of a plant in Brazil and it already has two companies
incorporated in Brazil and Peru.
Our Purpose: To provide an environmental solution by
recovering gold and other precious metals from by-products
discarded by primary producers.
What we do
Goldplat Recovery (Pty) Ltd ("GPL") recovers gold from the
following by products generated by the gold mining industry in
South Africa.
RECOVERY PROCESS
Woodchips
The woodchips are washed with water to produce washed
woodchips, slime and coarse rejects. The slime is sent to gold
recovery by carbon in leach (CIL) using cyanide. The gold is
recovered as bullion. The washed woodchips are sent to a rotary
kiln where they are burnt to ash and then the gold is recovered
from the ash by milling and CIL with cyanide. This gold also
reports as bullion. The rejects are processed separately by
milling and cyanidation.
Surface Materials
The surface materials are milled and passed through gravity
concentrators to produce a gravity concentrate and the
tailings are passed through the carbon in leach (CIL) circuit to
recover gold.
Mill Liners
The steel liners are shotblasted to recover a concentrate. The
steel is then sold to the local foundries to manufacture new
liners for the gold mining industry in South Africa. The rubber
is burnt in the static incinerator to produce an ash containing
gold. The remaining steel and or aluminium is sold to the local
scrap merchants.
Mill Girth Gear Grease
The mill grease is burnt in the static incinerator or rotary kiln to
produce an ash containing gold.
Fine Carbon
The fine carbon is milled and the fine product is burnt in
the rotary kiln to produce a high grade ash. The ash is then
processed through a milling and CIL circuit.
Introduction
WOODCHIPS
SURFACE MATERIALS
Wood is used as support in underground
mines. Some of this wood reports with the
ore during the mining operation.
The wood is then milled with the ore and the fine woodchips
generated interfere with the subsequent processing.
The woodchips have to be removed by screening and this
product containing gold is stockpiled.
It is also an environmental problem and thus has to be
disposed of. GPL has contracts with all the major mines in
South Africa to purchase the material.
Some surface materials which contain gold
cannot be processed by the mine because
they contaminate the main circuit.
Furthermore, some of these materials are an environmental
problem for the mine and need to be removed.
GPL removes these materials and recovers gold to offset the
costs and in some cases pays the mine for a portion of the
gold recovered.
MILL GIRTH GEAR GREASE
FINE CARBON
The grease is periodically recovered from
the girth gear.
The carbon is generated in the CIL circuit and
in the elution process.
MILL LINERS
These are made from steel and/or rubber.
Currently GPL receives liners from Pan African Mines, Durban Roodepoort Deep, Sibanye Gold, Gold One,
Nicolor (Pty) Ltd, and Impala Platinum.
Goldplat PLC | Annual Report and Accounts 2024
2
INTRODUCTION
Highlights
Financial
GBP 72.7m
Revenue for the year
GBP 9.8m
Operating profit
GBP 3.9m
Net cash flow from operations
Health and Safety
0
Fatalities
South Africa 2.34 ; Ghana 1.42
Lost time injury frequency rate (LTIFR)
South Africa 0.19 ; Ghana 0.4
Total recordable injury frequency rate
(TRIFR)
Operational and
growth
37,466 ounces
Gold production
42,693 ounces
Gold sales
GBP 939,000
Capital expenditure
Governance
GBP 1.7m
Tax paid
None
Value of fines/penalties relating to
ESG incidents or breaches
Environmental
203.13 mega litres
Water consumption
35.129 Gwh
Electricity usage
Social
474
Number of employees
GBP 87,000
Training spend for the year
GBP 62,000
Social development spend
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
3
Goldplat PLC’s precious metals processing facilities combined
continued to achieve excellent trading results during the year
ended 30 June 2024.
Our portfolio of core assets consists of two gold recovery
operations, in South Africa and Ghana, with plans to extend
recovery operations to Brazil, servicing the African and
South American markets. These operations recover gold and
platinum group metals (‘PGM’) from by-products of current and
historical mining processing, thereby providing mines with an
environmentally friendly and cost-efficient way of removing
waste material.
Looking at the trading results of Goldplat PLC ("the Company"
or "Goldplat") and its subsidiaries, together referred to as "the
Group", profit for the year remained strong at GBP4,322,000
(2023 – GBP3,068,000). The increase was driven by strong supply
to operations in Ghana, improved gold price and reduction in
electricity supply cuts in South Africa. This resulted in a return
on invested capital (Profit after Taxation divided by Total Equity)
of 21.1% (2023 – 17.8%). Cash generation across the Group
continued to be robust with net cash flows from operating
activities of GBP3,872,000 (2023 – GBP3,343,000) and net year
end cash of GBP3,886,000 (2023 – GBP2,781,000).
The results achieved continue to indicate the resilience of our
operations and team as well as the diversity in our markets
and products with a reduction in supply in South Africa being
offset by strong supply in West Africa and South America to the
operations in Ghana.
We remain focused on long term visibility of earnings in the
recovery businesses by increasing visibility of resources through
the strengthening of partnership relationships and improved
processing methods. At the same time we are positioning
ourselves as a service group focused on key elements of
primary producers’ Environmental, Social and Governance (ESG)
initiatives. Our key focus will remain on extracting value from
gold bearing by-products whilst we investigate broadening the
commodity spaces in which we operate and add value.
As indicated in the prior year, the Company will continue
to return cash in excess of operating and development
requirements to shareholders. Due to the capital invested
into a new tailings storage facility (“TSF”) in South Africa and
future capital requirements to maintain operations as well
as processing of the old TSF, the Company did not distribute
any cash to shareholders during the year. We will continue to
evaluate this position and, when appropriate, will distribute cash
through either share repurchases or dividends, whichever the
Board believes will add the most value, to our shareholders.
Goldplat has a pivotal role to play in the circular economy
that extends from the extraction of minerals to re-processing
of what would typically be dumped as waste materials, and
to responsible mining and business practices that underpin
Goldplat as a sustainable partner for large mining groups.
As referred to in the Strategic Report, the business has adopted
certain sustainability reporting principles in the current year
including profiling material matters through the application of
double materiality and linking these material issues to strategic
responses and performance metrics.
As a starting point, we have conducted materiality assessments
to identify where our highest level of sustainability impact could
be and in turn, linking these matters to our strategic response,
policies and performance management. We are committed to
creating measurable value for all our stakeholders towards a
just and sustainable socio-economically future.
Goldplat will continue developing its integrated sustainability
strategy and reporting practices. This process is ongoing, and
the Board will continue to monitor our obligations and make
sure that we meet or exceed expectations as we continue to
create and preserve value for all our stakeholders.
We look forward to continuing to build on the successes of
the past few years and increasingly realising and growing
the intrinsic value of Goldplat. I wish to thank all Goldplat
employees, as well as my fellow directors, our advisors, our
shareholders, as well as all of our other stakeholders for their
efforts as we look forward to the coming years with enthusiasm.
Gerard Kisbey-Green
Chairman
20 December 2024
Chairman's Statement
CEO REPORT
Goldplat PLC | Annual Report and Accounts 2024
4
Overview of operations
Goldplat is a mining services company, specialising in the
recovery of gold and other precious metals, from by-products,
contaminated soil and other precious metal bearing material
from mining and other industries. Goldplat has a pivotal role to
play in the circular economy that extends from the extraction
of minerals to re-processing of what would typically be dumped
as waste materials. Goldplat has two market leading operations
in South Africa and Ghana focused on providing an economic
method for mines to dispose of waste materials while at the
same time adhering to their environmental obligations.
Goldplat has been providing these services for more than 20 years,
mainly to the mining industry in Africa, but more recently also
in South America. Goldplat’s extraction processes and multiple
process lines enable it to keep materials separate, which provides a
high degree of flexibility when proposing a solution for a particular
type of material. The processes which are employed include
roasting in a rotary kiln, crushing, milling, thickening, flotation,
gravity concentration, leaching, CIL, elution and smelting of bullion.
Goldplat's recovery operations recover circa 2,000 ounces (of gold
and other metals) monthly through various circuits and under
different contracts. The number of ounces is dependent on the
type and volume of material supplied and the grade, recovery,
margins and terms of contracts and can differ significantly based
on the nature of the material supplied and processed. At a
minimum, 70% of material produced is exposed to the fluctuation
in gold price, with the remainder of the production being offset
by corresponding changes in raw materials costs. Due the factors
mentioned above, margins tend to fluctuate month to month.
The strategy of the Company, which also drives the key
performance indicators of management, is to return value to the
shareholders by creating sustainable cash flow and profitability
through:
• growing its customer base in Southern Africa, West Africa,
South America and further afield;
• strengthening its license to operate in the jurisdictions in
which it operates;
• forming strategic partnerships with other industry participants;
• leveraging its role in the circular economy including by
diversifying into processing of platinum group metals (“PGM”)
and other commodities contaminated material;
• ensuring the sustainability of its operations from an
environmental, social and governance perspective; and
• optimising the value to be extracted from the processing of its
2.2-million-tonne TSF.
Goldplat’s highly experienced and successful management team
has a proven track record in creating value from contaminated
gold and other precious metals-bearing material.
The Group follows the responsible gold guidelines as set-out
by the London Bullion Mark Association (“LBMA”) and our
processes are audited on a bi-annual basis, to provide further
comfort to its suppliers, partners and customers.
Goldplat has a JORC defined resource (see the announcement
dated 29 January 2016 for further information) over part of its
active TSF at its operation in South Africa of 1.43 million tonnes
at 1.78g/t for 81,959 ounces of gold.
Since the resource estimate was completed, more than 800,000
tonnes of material have been deposited on the TSF, at grades of
circa 1.45g/t.
Operating results
The recovery operations had exceptional strong results with
profit after tax attributable to owners of the Company of
GBP4,208,000 (2023 – GBP2,798,000), an increase of 50.4% from
the previous financial year.
The increase was driven by strong supply to operations in
Ghana, improved gold price and reduction in electricity supply
cuts in South Africa.
The Group has been focused on the recovery operations to
increase visibility of earnings through:
• Growing its customer base and its raw material supply on site;
• Securing its license to operate through maintaining licenses
and contained conditions;
• Getting necessary approvals for the processing of our old TSF
in South Africa;
• Securing and extending our role in the circular economy by
expanding our business into other commodities.
Growing the customer base
During the year the Group secured additional supplies of
material in Ghana and South America, whilst retaining all major
woodchips and byproduct suppliers. The increase performance in
Ghana is directly attributable to the strong growth in suppliers of
by‑products. A major supplier is defined as a supplier that supplied
a material amount of raw material to the operations during the last
financial year.
We received low-grade surface sources for processing through
our CIL circuits in South Africa from mainly one supplier during
the period. Through the agreement with the supplier in previous
years we have been able to create a greater visibility of supply
of future material as well as reducing the amount of low-grade
surface sources on site and the attendant cash requirement. The
nature of the materials to be removed will vary in terms of the
gold grade contained and the recoverability of the gold contained
through our circuits. The analysis and processing of these materials
to date has indicated that it will be viable to remove and process at
current costs and price parameters. However, the potential supply
from this one supplier which is for more than three years, remains
dependent on grade of gold contained, recoverability of the gold
contained, costs and price parameters. We are also engaging other
suppliers to increase visibility of supply.
Securing pipeline and developing alternative
reclamation resources
Units
2024
2023
Product type
South Africa
Ghana
South Africa
Ghana
Low-grade surface sources
Number
4
0
1
0
Woodchips
Number
8
0
6
0
By-products
Number
11
24
5
12
CEO Report
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
5
The percentage contribution from different feed products to
operating margins in South Africa does fluctuate from month
to month and contribution from each has been changing. In
the past, on average each product type contributed a third of
the margins for Goldplat Recovery SA ("GPL"), highlighting each
product's significance to the operations. Although the contribution
always fluctuates, we have seen a decline in value of by-products,
specifically woodchips received from industry which has resulted in
a reduction in turnover & margins in South Africa. In Ghana, Gold
Recovery Ghana ("GRG") margin is derived only from the different
types of by-products generated by current mining activities.
Although GPL has retained all contracts during the year,
consolidation continues in the South African gold industry:
mines are closing or are becoming more efficient in their
processing, resulting in reduced volumes and grade of
woodchips and by‑products received.
As a result, GPL’s focus is to increase its share of the market
in South Africa, securing the business of those major mining
groups in South Africa it is not servicing currently and looking
to neighbouring countries to supplement current feedstock
(although production in these countries is limited).
Ghana’s focus remains on opening up the West African market,
although the environment has become more challenging with the
export of gold concentrate being stopped by the authorities of a
few African countries.
The Group continues to investigate and research different types
of discard and waste sources from industry to increase the
flexibility in the types of material it processes.
License to operate
Due to the nature of the recovery services the Group provides
and the commodities we recover, we require various licenses to
operate and need to comply with the conditions of these licenses.
During the year the Group continued to invest the necessary
funds to maintain these licenses and to ensure our operations
comply with these licenses.
During the year GRG renewed the Minerals Commission - License
to Purchase and Deal in Gold and the Environmental Protection
Authority License. The delay in the renewal of the License to
Purchase and Deal in Gold in Ghana had a significant impact on
GRG’s ability to export material towards the end of the prior year.
The Department of Water and Sanitation of the Republic of
South Africa authorised the water use license of GPL during
June 2022 which includes the extraction and use of water in its
recovery processes and the impact of its disposal of tailings on a
new TSF, according to the conditions set out in the license, which
is valid for 12 years. This has enabled GPL to construct a new TSF
that will provide an additional five years of deposition capacity.
Towards the end of the period, it has become clear that the
focus and preference of the authorities in Ghana is on local
beneficiation of concentrate. This has necessitated our business
in Ghana to start recovering gold in concentrates locally in
the form of dore bars, which can then be sold to international
refiners. To increase capacity and processes to do this will
require investment of circa GBP900,000 and approval of
processes and plant by Environmental and Mining Departments.
We have made the relevant submission and are working with
authorities to improve our processes for local beneficiation.
Set out below is a summary of some of the major licenses
required by operations to operate in current jurisdictions:
License to operate Valid until
2024
2023
South Africa
Ghana
South Africa
Ghana
Current licenses
November 2040
Precious Metals
Refining License*
Precious Metals
Refining License*
January 2029
Air Emissions License
Air Emissions License
Expired
Mining Right
(expired* May 2023)
Mining Right
(expired* May 2023)
Annual
Radio-active License
Radio-active License
2034
Water Use License
Water Use License
Annual
Precious Metals
Import Permit
Precious Metals
Import Permit
Annual
Precious Metals
Export Permit
Precious Metals
Export Permit
Annual
Ghana Freezone
Authority
Ghana Freezone
Authority
May 2026
Minerals Commission
- License to Purchase
and Deal in Gold
Minerals Commission -
License to Purchase
and Deal in Gold
18 December 2025
Environmental
Protection Authority
License
Environmental
Protection Authority
License
New application
Waste License
Waste License
* GPL does not require a mining right in South Africa to continue its operation and is conducting its operations under a Precious Metals
Refining License which only expires in November 2040. As GPL does not have an identified mineral deposit and does not extract any ore
from a mineral deposit, it could not renew its mining right per the Department of Mineral Resources and Energy (‘DMRE’). We have applied
to the relevant Government authorities to convert the existing environmental management plan in place to an integrated environmental
authorization and waste management license. We have received a response that no change is required from us at this point, however for
clarity, we are still pursuing the change to an integrated environmental authorization and waste management license.
CEO REPORT
Goldplat PLC | Annual Report and Accounts 2024
6
CEO Report Continued
Circular economy
Goldplat has a pivotal role to play in the circular economy that
extends the extraction of minerals to re-processing of what
would typically be dumped as waste materials. It also extends
to responsible mining and business practices that underpin
Goldplat as a sustainability partner for large mining groups.
During the year all of our operating profit was derived from
the processing of discards or waste materials from historic or
current mining activities.
Goldplat believes that it can extend this pivotal role it is
participating in the circular economy to the gold industry in
South America and into other commodities.
We still hold a strategic 15% shareholding in a fine coal recovery
technology company. Goldplat has an option to invest an
additional GBP1.5m, which will increase our shareholding in
that business to above 50%. This investment would be used to
operationalise the technology through the construction of a fine
coal washing plant in Mpumalanga, South Africa. This option
would provide us diversification in our recovery operations
into a different commodity, namely coal, of which significant
resources are available in South Africa, with opportunities not
just for processing but also for environmental rehabilitation.
Based on management's evaluation, although the project
remains feasible, we do not believe the timing is correct to make
this investment given our current focus on increasing cash
availability and shareholder return.
The Group’s acquisition of land in South America at a value of
circa GBP71,500 has taken longer than expected due to the
timing of regional approvals that were required. The decision to
acquire land was driven by the need to establish an address in
South America from which we can service our clients. In time we
plan to establish operational plant capacity in Brazil to provide
solutions for lower grade material not processable at our other
plants due to the cost of transport to those facilities.
Tailings Facility
The new TSF at GPL was constructed adjacent to the current TSF
and was completed in August 2023 and commissioned during the
year. The new TSF has sufficient capacity to store the tailings we
will produce in our current operations for a further five years.
The new TSF has been constructed by using regulated synthetic
liner and design drainage which should enable a greater
quantity of process water to be re-used in the plant and reduce
seepage and contamination of ground water.
The new TSF allows us to divert all deposition from the current
facility, which will provide us with the ability to use the current
facility to recover the JORC resource through DRDGOLD. The
processing of our old TSF remains dependent on land owner
consent and the approval of the water use license over certain
areas for the installation of a pipeline to the DRDGOLD process
facility. We aim to have the final application submitted before
the end of January 2025, subject to land owner consent. The
approval process normally takes 365 days from submission.
DRDGOLD and Goldplat Plc are currently in the process of
evaluating different variables that will impact on the processing
of the TSF, as well as the commercials of doing so; this process
will be completed alongside the water use license. To enable
us to process the current TSF through a DRDGOLD facility, we
will require landowner consent, approval to install a pipeline
to this DRDGOLD processing facility (as indicated in paragraph
above) and will need to finalise commercial agreements with
DRDGOLD.
Electricity Supply
During the year, the South African operation lost circa 11% of its
production hours due to electricity supply outages, which has
had a significant impact on our lower grade circuits. However,
since April 2024, no electricity supply outages have been
experienced or are expected in the near future.
During the period, as a result of uncertainty of electricity supply
in the medium term, we invested in the diesel generators
which will be able to sustain operations in South Africa
during electricity cuts. The capital cost of this investment was
GBP812,000 and was financed over 36 months with one of our
local banks.
Anumso Gold Project – Ghana (‘AG’)
The gold mining license under the Anumso Gold (‘AG’) project
expired during March 2021 and was not renewed as was the
intention of the Company and the joint venture partner, Desert
Gold Ventures Inc. The investment in AG was disclosed as
a discontinued operation during the 2021 year. In that year
we were informed that mineral right fees since 2013 were
outstanding, which is still being disputed. None of the joint
venture partners intend to capitalise the AG project to settle the
claim and current AG liabilities exceed its assets by the minerals
right fees outstanding. The Company's share of outstanding
minerals right fees is GBP369,000 and this has been accrued in
prior years.
Outlook
Our focus during the year has been, and will continue to be:
• to open up and expand our market share in West Africa and
into the rest of Africa;
• to acquire land in Brazil, and expand our service delivery,
specifically on lower grade material in Brazil and elsewhere in
South America;
• expand local beneficiation in Ghana;
• increase our market share in South Africa and increase our
client base in neighbouring countries;
• to reduce the cost of production, specifically on our CIL
circuits in South Africa;
• to agree commercial terms on the reprocessing of the TSF
with DRDGOLD and finalise the regulatory requirements
to allow us to pump material through a pipeline to the
DRDGOLD facility;
• leveraging our strength and capabilities through the
processing of other precious metals and commodities.
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
7
The recovery operations have nearly always been cashflow
generative and during the year we have utilised some of this
cashflow to build the new TSF in South Africa, repay the share
repurchase loan in South Africa and support working capital
levels in Ghana. The Company will remain focused on sharing
future cashflows with shareholders, specifically distributing
any cash surplus (above Group’s operational requirements and
growth plans) to shareholders. After the end of the period, most
cash has been used to sustain inventory levels in Ghana, whilst
we increase our local beneficiation capacity.
The South African operations will continue to serve the South
African gold industry and will focus on sustaining profitability
from old mining clean-ups and as part of its diversification
strategy will continue investing capital into processing PGM's.
We are working with DRDGOLD to find the most economic
methods to reprocess TSF (which has a JORC Compliant
Resource of 81,959 ounces) and receiving environmental
approval for a pipeline which will be required to transport
material to a facility for processing.
Goldplat recognises the cyclical nature of the recovery
operations as well as the risks inherent in relying on short-
term contracts for the supply of materials for processing,
particularly in South Africa where the gold industry is in slow
longer term decline. These risks can be mitigated by improving
our operational capacities and efficiencies to enable us to treat
a wider range of lower grade materials and leveraging on our
strategic partnerships in industry to increase security of supply.
We will continue to seek materials in wider geographic areas. We
shall also keep looking beyond our current recovery operations
for further opportunities to apply our skillsets and resources.
Short-term
(2025 - 2026)
Medium-term
(2027 - 2029)
Long-term
(2030 and
beyond)
• Invest and
improve local
beneficiation
solutions of gold
concentrates in
Ghana.
• Approval of
landowners and
authorities for
construction
of pipeline
required for
processing of
old TSF through
DRDGOLD.
• To reduce
the of cost of
production,
specifically on
our CIL circuits
in South Africa.
• Expand our
service delivery
in South
America.
• Diversifying
into other
commodities
Conclusion
The last few years have seen a lot of changes in Goldplat’s
business as we have set out to increase sustainability and
growth of our recovery operations. I would like to compliment
Goldplat’s employees, its advisors, my fellow directors and the
Company’s shareholders not just for their efforts and support,
but for their resilience and how they have embraced the
changes and remained focused on the opportunities they bring.
This year we have seen the benefit of these changes and the
Board is looking forward to building on this year’s successes,
creating opportunities from the ever changing environment and
returning value to shareholders.
Werner Klingenberg
Chief Executive Officer
20 December 2024
Goldplat PLC | Annual Report and Accounts 2024
CFO REPORT
8
Financial Highlights
• Revenue increased by 73.6% to GBP72.7m (2023 - GBP41.9m)
• Operating profit increased by 127.0% to GBP9.8m (2023 - GBP4.3m)
• Cash and cash equivalents increased to GBP3.9m (2023 - GBP2.8m)
Overview
Goldplat delivered another year of solid financial results despite increased electricity supply cuts in South Africa, a reduction in
by‑product material supply, gravity shortfalls in the first half of the financial year and inflationary pressures.
Revenue increased by 73.6% to GBP72,691,000, due to more gold sold as a result of an increase in high-grade low-margin batches
processed in Ghana and an increase in the average gold price during the year to USD2,076/oz (2023 – USD1,829/oz).
The margins of the Group depend upon the volume, quality and type of material received, the metals contained in such material,
processing methods required to recover the metals, the final recovery of metals from such material, the contract terms, metals prices
and foreign currency movements. During the year, the gross profit margin remained 17.7%, with the high volume of high-grade
low-margin batches processed in Ghana offset by lower gold production in South Africa which was due to a reduction in by-product
material supply and the impact of electricity supply cuts. This was exacerbated by foreign exchange losses, which increased by
GBP1,819,000.
The table below on the operating performance of Goldplat (excluding foreign exchange gains & losses, finance cost and taxes) reflects
the ability of the recovery operations in South Africa and Ghana to produce profitably at various gold prices and production levels for
the last 5 years.
2024
2023
2022
2021
2020
Average Gold Price per oz in US$ for the year
2,076
1,829
1,833
1,846
1,560
GBP'000
GBP'000
GBP'000
GBP'000
GBP'000
Revenue
72,691
41,881
43,222
35,400
24,809
Gross Profit
12,843
7,422
9,994
6,199
7,312
Other (Loss)/Income
38
(96)
53
56
0
Administrative Costs
3,110
3,021
2,332
1,694
1,977
Operating Profit Before Finance Costs
9,771
4,305
7,715
4,561
5,335
Financial review
The major functional currencies for the Group subsidiaries are the South African Rand (ZAR) and the Ghana Cedi (GHS) whilst the
presentation currency of the Group is Pounds Sterling (GBP). The average exchange rates for the year are used to convert the
Statement of Profit or Loss and Other Comprehensive Income for each subsidiary to Sterling.
As set out in the table below, the average ZAR and GHS weakened against the Pound Sterling by 9.9% and 15.0% respectively.
The exchange rates as at the end of the year are used to convert the balance in the Statement of Financial Position. As set out in the
table below, the ZAR closing rate appreciated and GHS closing rate depreciated by -3.6% and 32.3% respectively, which resulted in the
GBP1,939,000 loss on exchange differences on translation during the year.
2024
GBP
2023
GBP
Variance
%
South African Rand (ZAR)
Average
23.57
21.43
10.0%
Ghanaian Cedi (GHS)
Average
15.76
13.7
15.0%
South African Rand (ZAR)
Closing 30 June 2024
23.02
23.87
-3.6%
Ghanaian Cedi (GHS)
Closing 30 June 2024
19.32
14.60
32.3%
Apart from the gold price, the Group’s performance is impacted by the fluctuation of its functional currencies against the USD in
which a majority of our sales are recognised. The average exchange rates for the year used in the conversion of operating currencies
against the USD during the year under review are set out in the table below:
2024
USD
2023
USD
Variance
%
South African Rand (ZAR)
Average
18.72
17.78
5.3%
Ghanaian Cedi (GHS)
Average
12.51
11.37
10.0%
CFO Report
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
9
Net finance costs increased to GBP3,778,000 (2023 – GBP881,000)
during the year as a result of:
Increase in foreign exchange losses in operations from
GBP221,000 to GBP2,040,000. During the current year we had
a large foreign exchange loss in Ghana due to the depreciation
of the GHS against the USD during that year. As we pre-finance
a portion of our sales to the smelters, the exchange rate on the
day we receive most of our funds was lower than the exchange
rate on the day we recognise the sale in our records.
The interest payable on borrowings relates to the buy-back of
the minority share in GPL during the previous years.
Taxation
During the year the income tax expense increased by 369%. This
has resulted in an increase in the effective tax rate from 10.4%
to 28%, which was driven by the following:
Ghana:
• Increase in GRG profits before taxation from GBP1,965,000 to
GBP5,234,000.
• GRG is registered as a Free Zone company in Ghana and was
taxed at 15% (2023: 15%) during the year.
South Africa:
• Decrease in the mining taxation rate from 9.84% for GPL,
to 0%, due to a change in the mining tax rate formula and a
decrease in taxable mining profits;
• GPL did incur non-mining taxable income relating to interest
on the GMR intercompany loan which was charged at the
South African Company Tax rate of 27%;
During the year, the dividend from GPL to the Company incurred
a withholding dividend taxation charge of 5%. The withholding
dividend tax for the year was GBP58,000 (2023 – GBP69,000).
Other comprehensive income
During the year the Group experienced a loss in foreign exchange
translation reserve of GBP1,081,000 and was primarily made up of:
• Foreign exchange translation loss in GRG of GBP1,642,000 as
a result of devaluation of the GHS during the year against the
GBP by 15.0%; and
• Foreign exchange translation profit in GPL of GBP403,000 as
a result of devaluation of the ZAR during the year against the
GBP by 9.9%.
Property, plant & equipment
During the year we spent GBP939,000 on the acquisition and
construction of plant and equipment, mainly at GPL in South Africa.
We incurred GBP492,000 in GPL, with the main contributors to
the capital expenditure in the current year being capital incurred
on the new generator project of GBP424,000.
We incurred GBP447,000 in GRG, of which GBP440,000 related
to the new milling, gravity and flotation circuit to increase
recoveries from material received. This plant started operating
in Q3 of the 2024 financial year.
Intangible Assets
The intangible assets relate to the goodwill on the investment
held in Gold Mineral Resources Limited ("GMR") and GPL. The
balance has been assessed for impairment by establishing the
recoverable amount through a value-in-use calculation, the detail
of which has been disclosed in note 5 of the financial statements.
Right-of-use asset
The right-of-use assets increased during the year by
GBP652,000. The primary reason for the increase is due to the
generator project financed with a value of GBP812,000 in GPL.
The Group acquired plant and machinery and vehicles on
finance leases for GBP920,000.
The remainder of the changes relate to amortisation for the
year and foreign exchange movements as indicated in note 17
of the financial statements.
Personnel
Personnel expenses increased by 1.4% to GBP5,289,000 (2023 - GBP5,214,000) during the year mainly due to an increase in the
number of production personnel from 415 to 423 and the annual salary increases in South Africa and Ghana. We spent a total of
GBP87,000 on various training programmes for our personnel.
Net finance costs
The net finance loss for the year can be broken down into the following:
Interest component
2024
GBP
2023
GBP
Interest receivable
102,000
69,000
Interest payable
(218,000)
(283,000)
Interest on pre-financing of sales
(1,604,000)
(956,000)
Intercompany foreign exchange income/loss
(18,000)
510,000
Operating foreign exchange losses
(2,040,000)
(221,000)
Net Finance Costs
(3,778,000)
(881,000)
Goldplat PLC | Annual Report and Accounts 2024
CFO REPORT
10
CFO Report Continued
Receivable on Kilimapesa sale
GMR is entitled to receive a further 1% net smelter royalty on all
production from Kilimapesa up to a maximum of $1,500,000, on
any future production from Kilimapesa. As at the end of the year,
based on estimated future production at Kilimapesa, GBP714,000
is receivable. Refer to note 7 of the financial statements.
Loan receivable
As part of the repurchase of the minority's share of GPL in
the 2022 year, shares were also issued to a new minority in
South Africa, Aurelian, a portion of which is payable from
dividend proceeds. The balance outstanding is GBP164,000.
Inventories
The decrease of GBP8,050,000 in the inventory balance, relates
mainly to a decrease of GBP6,181,000 in inventory at GRG.
2024
GBP
2023
GBP
Precious Metals on Hand
and in Process
9,038,000
16,618,000
Raw Materials
1,874,000
2,462,000
Consumable Stores
1,172,000
1,054,000
12,084,000
20,134,000
The decrease in GRG inventory relates mainly to precious metals
on hand and in process sold in the current financial year as the
inventory held by the refiners was finalised and sold.
The raw material stock is only held in South Africa, and relates to
the low-grade material processed through our Carbon-In-Leach
(‘CIL’) circuits. With the agreement reached with DRDGOLD,
by which we can remove and process materials on DRDGOLD
premises, we have not just increased the availability of raw
material for processing, but also put GPL in a position to operate
with lower levels of raw materials at our premises.
Trade and other receivables
The Group's trade and other receivables fluctuates based on
grade and volume of batches and material processed during
different periods of the year in the two operating entities.
Apart from the gold bullion produced in South Africa, on which
payment is received within 14 days, for the remainder of the
concentrates we produce, the payment terms on average are
between 4 to 6 months.
During the year, the trade and other receivables decreased by
GBP7,501,000, of which GBP1,245,000 relates to a decrease in
GRG and GBP6,547,000 to a decrease in GPL.
The decrease in GRG and GPL was mainly due to the finalisation
of exports at the smelters that built up in the previous
financial year.
Deferred tax liabilities
The deferred tax liabilities increased during the year from
GBP531,000 to GBP616,000. The tax rate remained the same
as the previous year but deferred tax, specifically relating to
property, plant and equipment, increased during the year.
Interest bearing borrowings
In 2022, GPL entered into a ZAR denominated bank facility of
ZAR 60 million (approximately GBP3.02 million) with Nedbank,
to finance the repurchase of shares from minorities in
South Africa. The full ZAR 60 million was drawn during the first
half of the prior year and the principal on the bank facility is
repayable monthly over 36 months. The interest payable on the
facility is the South African Prime Rate plus 1.75%.
GPL provided security over its debtors as well as a negative
pledge over its moveable and any immovable property, with a
general notarial bond registered over all movable assets. The
Group entered into a limited suretyship for ZAR 60 million, in
favour of Nedbank.
The balance outstanding on the reporting date was GBP296,000
of which GBP296,000 is repayable in the next 12 months.
Refer to note 16 of the financial statements for further disclosure.
Trade and other payables
The decrease in trade and other payables of GBP17,252,000,
was mainly driven by the finalisation of export batches at the
smelter in Europe.
In general, we pay our suppliers before we recover the value
from material processed and delivered to smelters or refiners.
Suppliers are either paid in full or a percentage of the balance
is paid with the balance retained until we receive our final
results from refiners or smelters. We receive external funding
for material delivered to smelters to finance this gap between
receipts and payments. During the year the balance funded
decreased as batches from the prior year were finalised
and settled.
Conclusion
Looking forward, we expect inventory, trade and other payables
and trade and other receivables to increase in the first two
quarters, specifically in Ghana, as the Ghanaian operation is
going through a business model change with the requirement to
beneficiate all concentrates to doré gold bars in-country.
Goldplat will continue to critically review and assess its cost
structures and remain focused on generating cash to fund our
capital spend on compliance projects as well as creating value
for our shareholders.
Brent Doster
Chief Financial Officer
20 December 2024
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
11
Goldplat PLC | Annual Report and Accounts 2024
THE BOARD
12
BOARD
WERNER KLINGENBERG
Chief Executive Officer (Appointed 2017)
Werner joined Goldplat in 2015 as Group Financial Manager.
Within this role he was integral in managing Goldplat’s financial
and operational affairs. With his knowledge and understanding
of the Group’s operations, he was appointed to the role of
Group Finance Director in 2017. Following a year as interim CEO,
he was appointed to the role of Group CEO on a permanent
basis in September 2019. Werner qualified as a Chartered
Accountant whilst serving his articles with Deloitte in South
Africa and has accrued significant commercial experience, both
within Southern Africa and at a wider international level, initially
working within the telecommunications and retail industries.
His extensive knowledge spans across audit and financial
management and systems.
GERARD KEMP
Independent Chairman (Resigned September 2024)
Gerard Kemp held various positions in investment banking
and the mining industry, including the CEO of Kaouat Iron
Limited and the Head of the Pamodzi Resources Investment
Fund, where he founded Rand Uranium (Pty) Limited, before
founding M Squared Resources (Pty) Limited. He also served
as director of business development at Rand Merchant Bank,
where he spearheaded a number of South Africa's largest Black
Economic Empowerment transactions. He also served as head
of investment banking at BoE Merchant Bank and as head of
equities research at BoE Securities where he was twice rated
South Africa's top gold analyst. Gerard Kemp spent 22 years in
Anglo American's Gold Division, as a surveyor and as a mineral
economist.
SANGO NTSALUBA
Non-Executive Director (Resigned September 2024)
Sango is the Chief Executive Officer and founder of Aurelian
Capital (Pty) Limited, an investment company which holds a
9.37 per cent interest in Goldplat Recovery (Pty) Limited. He has
built an illustrious career within South Africa, spanning over
30 years.
This includes successfully co-founding what is now known
as SNG-Grant Thornton, one of South Africa’s Big 5 auditing and
accounting firms. Alongside a distinguished auditing career,
Sango has extensive corporate experience in areas that include
logistics, and the automotive industry. He currently serves as
an independent board of Barloworld Limited, a leading global
industrial company listed on the Johannesburg Stock Exchange
(JSE) and is the chairperson of the Group’s audit committee.
He also serves on the boards of Kumba Iron Ore Limited and
Pioneer Foods Group Limited.
GERARD KISBEY-GREEN
Independent Chairman (Appointed 2020)
Gerard has built an expansive career in the mining and related
financial industry, spanning over 30 years. After graduating as
a Mining Engineer in South Africa in 1987, he gained extensive
experience working in various management positions for
a number of the larger South African mining companies,
including Rand Mines Group and the gold division of Anglo
American Corporation. During this time, he worked on gold,
platinum and coal mines primarily in South Africa and also in
Germany and Australia. Gerard subsequently spent 17 years
in the financial markets, including five years as a mining equity
analyst and 12 years in mining corporate finance. He has worked
in South Africa and the UK for banks including JP Morgan Chase,
Investec and Standard Bank. Gerard has extensive experience
in IPOs, capital raisings, M&A transactions and deals covering a
great diversity of commodities and geographic locations. He also
has experience in nominated adviser, broker and advisory
roles. He has worked extensively in Africa, particularly South
Africa, Western and Eastern Europe, the Middle East, Far East,
Central Asia and North America. After returning to South Africa
as a Managing Director with Standard Bank in 2009, Gerard
left the banking industry and joined Peterstow Aquapower,
a mining technology development company, as CEO in 2011,
before accepting a position in 2012 with Aurigin Resources Inc.,
a privately-owned Toronto-based gold exploration company with
assets in Ethiopia and Tanzania, as President and CEO. Gerard
joined Goldplat PLC as a Non-executive Director in 2014 and
took over the role of Chief Executive Officer in 2015, a position
he resigned from during 2019. He joined Goldplat Plc again as
a Non-Executive Director in May 2020.
MARTIN OOI
Non-Executive Director (Appointed in 2021)
Martin is a qualified medical doctor, an experienced
entrepreneur and investor. He is the founder and Managing
Director of the Serkona Group of private limited companies
based in Australia with interests in multiple medical centres,
commercial properties, and other unlisted assets. As a director
of Goldplat PLC, his focus is on capital allocation decisions and
maximising of the per-share intrinsic value of the company.
Martin holds and previously held directorships in the last five
years in Daws Road Medical (Pty) Ltd, Ooi and Family Custodian
(Pty) Ltd, Ooi and Khoo Family One (Pty) Ltd, Ooi and Khoo
Family Pty Ltd, Ooi Family Investments Pty Ltd, Prema House
Medical Centre Management Group Pty Ltd, Prema House
Properties Pty Ltd, Serkona Investments One Pty Ltd, Serkona
Investments Pty Ltd, Serkona Medical One Pty Ltd, Serkona
Medical Pty Ltd, and Serkona Properties Pty Ltd.
He is a member of the remuneration committee which looks at
market norms regarding directors and executive remuneration
for recommendation to the board.
The Board
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
13
DOUGLAS DAVIDSON
Group Chief Operating Officer (Appointed May 2023)
Douglas is a Metallurgical Engineer (B. Eng Metallurgy) with
26 years of experience in the mining industry of which
23 years have been in the diamond industry mainly in Namibia
and Lesotho. Douglas holds an MBA from the University of
Stellenbosch which he completed in 2015.
During his time in Namibia he was seconded from De Beers
to Namdeb where he held several senior positions which
included Group Metallurgical Lead as well as two Mine Manager
positions. He served on EXCO for 5 years out of the 15 years
at Namdeb. He played a key role in leading and developing
the metallurgical discipline to be fully localised. He led
multi-disciplinary operational teams to identify, develop and
implement improvement and optimisation strategies.
Recently Douglas held the position of Chief Technical Officer
at Namakwa Diamonds with a specific focus on the Lesotho
Operations at Kao Mine, operated by Storm Mountain
Diamonds. He played a key role in identifying, developing and
implementing value accretive and risk mitigating initiatives to
improve overall business performance.
BRENT DOSTER
Group Chief Financial Officer (Appointed February 2023)
Brent is a Chartered Accountant (SA) with over 20 years of
experience in financial management and administration in
Africa across the coal and gold mining sectors.
During this time, Brent has held a number of senior finance
positions in BHP Billiton, Anglo American, Asanko Gold and
most recently West Wits Mining. He has played a key role in the
deployment of a group wide ERP system to improve forecasting
and budgetary controls in those organisations as well as
leading the Company’s procurement processes and commercial
negotiations to bring the Asanko Gold Mine into production on
time and under budget.
Most recently, he was Group Finance Manager at West Wits
Mining. He holds an Honours Bachelor of Accountancy degree.
Gender
Male
5
Female 0
Ethnicity
Black 0
White 4
Other 1
Tenure
0-5 years
4
5-10 years
1
> 10 years
0
Independence
Independent
Non-executive Directors 1
Non-executive Directors 1
Executive Directors
3
Age
40-49 years 3
50-59 years 1
60-69 years 1
70-79 years 0
Goldplat PLC | Annual Report and Accounts 2024
DIRECTORS' REPORT
14
The Directors present their report together with the audited
financial statements of the Group for the year ended 30 June 2024.
Events after reporting date
All events subsequent to the date of the consolidated and
separate annual financial statements and for which the
applicable financial reporting framework requires adjustment or
disclosure have been adjusted or disclosed.
The directors are not aware of any matter or circumstance
arising since the end of the financial year to the date of this
report that could have a material effect on the financial position
of the company.
A review of the business and risks (including those relating
to financial instruments) and uncertainties is included in the
Strategic Report.
The Group reports a pre-tax profit from continued operations of
GBP5,993,000 (2023 - GBP3,424,000) and an after-tax profit of
GBP4,322,000 (2023 - GBP3,068,000).
Major events after the reporting date
There were no major events that occurred after the
reporting date.
Dividends
No dividend is proposed in respect of the year ended 30 June
2024 (2023 - GBPNil per share).
Share buy-back
There were no share buy-backs during the year ended 30 June
2024 (2023: GBPNil per share).
Political donations
There were no political donations during the year (2023 - GBPNil).
Corporate governance
Chairman’s Corporate Governance Statement
Goldplat adopted the QCA Corporate Governance Code (2018)
(the Code) as its recognised corporate governance code
(pursuant to the AIM Rules) and this statement, and other
disclosures, is presented pursuant to that Code. As well as this
website, certain aspects of Goldplats approach to the Code are
addressed in the Annual Reports for the financial years from
30 June 2020 onwards.
It is the Chairman’s responsibility to establish and monitor
effective corporate governance. Each member of the Board
believes in the value and importance of good governance
practices in promoting the longer-term development of the
group. The Board considers that it does not depart from any of
the principles of the QCA Code and recognises that monitoring
and developing its governance structure is a continuous process.
We actively take account of the views of our shareholders and
professional advisers in considering our practices.
Risk management
The Company’s business model is set out in this Annual Report,
whilst the Strategic Report sets out the strategy and the principal
risks and uncertainties, together with the steps taken to promote
the success of the Company for the benefit of members as
a whole.
The Board reviews progress both in terms of delivery of key
strategic initiatives and the financial performance of the
operating entities on at least a quarterly basis. In this, the Board
actively seeks to identify and mitigate risks of the Group and its
businesses.
Set out in the Annual Report under The Board are biographies
of each director including their experience’s relevance to their
responsibilities at Goldplat, whether they are independent and
their length of service as directors of the Company. The number
of meetings of the Board and the attendance record is set out in
the Directors Report. The activities of the board committees are
reviewed below.
Each director is expected to keep their skillsets up-to-date and
relevant to Goldplat through continual development, both within
Goldplat and from other business interests, as well as through
membership of relevant professional bodies.
No external assessment of board performance was undertaken
during the year; however, the views of shareholders are taken
into account.
The Board has established an audit committee and a
remuneration committee with formally delegated duties and
responsibilities:
• Audit Committee Report
The Audit Committee members are Gerard Kisbey-Green and
Martin Ooi. The committee’s terms of reference are available
on the website. The Audit Committee met twice during the
year ended 30 June 2024 to discuss planning of the annual audit
and matters arising from the audit. Representatives from the
auditors were in attendance.
The Audit Committee reports verbally to the full board ahead
of the Board approving the accounts for the year in relation to
matters arising from the audit which have been raised by the
auditors. The Audit Committee did not undertake a separate
review of risk identification and risk management across the
group as these matters (including the separation of executive
responsibilities) are considered by the whole board on a regular
basis, at least quarterly.
The Group’s auditors, PKF Littlejohn LLP, were appointed in 2023
and provide no other services to the Group. The two principal
operating entities are separately audited by local firms and their
work is subject to review by the Group auditor under guidelines
of International Standards on Auditing (UK) (ISAs (UK)) and
applicable laws.
The two Audit Committee meetings held during the year were
attended by both members.
Directors' Report
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
15
• Remuneration Committee Report
The Remuneration Committee members are Gerard
Kisbey-Green and Martin Ooi. The committee’s terms of
reference are available on the website. The committee met
twice during the year. The Committee’s recommendations are
reported to the full board, but it does not prepare a written
report. Any recommendations are subject to approval by the
whole board.
Goldplat seeks to retain and incentivise an effective executive
management team capable of delivering on the Group’s
operational requirements as well as its strategic goals. To this end,
it is the Group’s policy to have clear and simple remuneration
structure, in line with many companies on the AIM market of a
comparable size. Under this, executive directors receive base
salaries and may, on a discretionary basis, receive performance
related pay as approved by the non-executive directors.
Additionally, as a longer-term incentive, seeking to align the
interests of executive directors over the medium term with
those of shareholders, on a discretionary basis, executive
directors may be granted options to acquire ordinary shares in
the Company. It is the Company’s practice that option awards
are made at market price at the time of award and vest and
become exercisable over a year (usually three years) sufficient
to ensure a balance between incentive for the executive and
outcome for shareholders.
The executives’ salaries take into account the individual’s
responsibilities within the Group and their professional and
technical qualifications, in the context of where the Group
operates.
The Group’s parent is traded on a public market in the UK and
the executive directors’ remuneration is referenced to their
responsibilities as directors of a UK incorporated company
traded on a public market in the UK. The Group has no
operations or employees in the UK. The Group’s operating
entities are in South Africa and Ghana, with each having
significantly different remuneration references than the UK,
where it employs over three hundred locally based employees.
In this context, a comparison of the total pay of the highest paid
director to the average pay of all Company employees is not
considered to be meaningful as an assessment of the pay of the
highest paid director. Executive directors’ employment contracts
provide for six months’ notice of termination on either side.
Director’s performance
Board
The responsibilities of the Chairman include the following:
• providing leadership to the Board, ensuring its effectiveness
in all aspects of its role and setting its agenda;
• ensuring that adequate time is available for discussion of all
agenda items;
• ensuring that the Directors receive accurate, timely and clear
information;
• ensuring effective communication with shareholders;
• promoting a culture of openness and debate by facilitating
the effective contribution of the Board of Non-Executive
directors in particular; and
• ensuring constructive relationships between the Executive
and Non- Executive Directors.
The Board aims to lead by example and do what is in the best
interests of the Company. The Group’s employees are bound
by a Code of Conduct, which sets forth the standards expected
by the Company. The Board believes that our commitment to
good corporate governance has allowed for a corporate culture
throughout the organisation.
The Company provides independent professional and legal
advice to all Directors where necessary, to ensure they are
able to discharge their duties. In addition, all Board members
have access to the services of the Company Secretary, who is
responsible for ensuring all Board procedures are complied with.
All executive directors are appointed on a full-time basis
and are actively involved in the running of the business.
Non-executive directors are required to attend a board meeting
quarterly, as a minimum and have made themselves available to
support the executive directors.
Directors' Performance
The Board’s performance is measured principally by the
financial results and by the operations’ performance regarding
environmental, health and safety and other regulatory
requirements and takes into account feedback from
shareholders which is regularly received through shareholder
meetings and correspondence.
The two remuneration committee meetings held during the year
were attended by both members.
During the year, four board meetings were held. All the board
meetings were attended by all the board members.
Goldplat PLC | Annual Report and Accounts 2024
DIRECTORS' REPORT
16
Directors' Report Continued
Directors’ interests
The beneficial interests of the Directors holding office during the 2024 financial year in the issued share capital of the Company were
as follows:
30 June 2024
30 June 2023
Number of
ordinary
shares
of 1p each
Percentage
of issued
share
capital
Number of
ordinary
shares
of 1p each
Percentage
of issued
share
capital
M Ooi
48,403,801
28.85%
48,403,801
28.85%
S S Ntsaluba*
425,000
0.25%
425,000
0.25%
W Klingenberg
150,000
0.09%
150,000
0.09%
G Kisbey-Green
1,333,334
0.79%
1,333,334
0.79%
* Resigned September 2024
No other director had a beneficial interest in the share capital of the Company.
Directors’ remuneration and service contracts
Details of directors’ emoluments are disclosed in note 22 of the financial statements.
2024
GBP'000
Salaries
GBP'000
Fees
GBP'000
Other
GBP'000
Total
GBP'000
D Davidson*
33
–
1
34
W Klingenberg
187
–
2
189
B Doster*
32
–
1
33
G Kisbey-Green
–
30
–
30
G Kemp
–
45
–
45
S Ntsaluba
–
30
–
30
M Ooi
–
30
–
30
252
135
4
391
* D Davidson and B Doster appointed 1 April 2024.
Management fees of GBP16,802 (2023: GBP16,802) were paid during the reporting year by GPL to its minority shareholders, in which
S Ntsaluba has ultimate shareholding.
2023
GBP‘000
Salaries
GBP'000
Fees
GBP'000
Other
GBP'000
Total
GBP'000
M S Robinson
–
15
–
15
W Klingenberg
178
–
62
240
G Kisbey-Green
–
38
–
38
G Kemp
–
28
28
S Ntsaluba
–
30
–
30
M Ooi
–
30
–
30
178
141
62
381
Directors’ options
No directors’ of the Company exercised options during the year (2023: Nil).
Directors’ indemnities
The Company maintains Directors’ and officers’ liability insurance providing appropriate cover for any legal action brought against its’
Directors and/or officers.
Goldplat PLC | Annual Report and Accounts 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
17
Going concern
The directors assessed that the Group is able to continue in
business for the foreseeable future with neither the intention
nor the necessity of liquidation, ceasing trading or seeking
protection from creditors pursuant to laws or regulations.
The assessment of the going concern assumption involves
judgement, at a particular point in time, about the future
outcome of events or conditions which are inherently uncertain.
The judgement made by the directors also includes the
availability of and the ability to secure material for processing
at its plants in South Africa and Ghana, the impact of loss of key
management, outlook of commodity prices and exchange rates
in the short to medium term as well as changes to regulatory
and licensing conditions.
During the year the Group maintained all our suppliers in South
Africa and Ghana for by-product material and increased our
footprint in the South American market. Further progress has
been made in securing additional contracts in West Africa.
With a secured supplier base and more than 5 years of surface
sources on site or on contract, management believes that it
will be in a position to operate sustainably for the foreseeable
future.
For the 2024 financial year, the Group achieved positive
operating profits.
The new TSF was commissioned and brought into use in
Q2 FY2024. The new TSF will have sufficient capacity to store
the tailings we will produce in our current operations for the
next five years.
For the past financial year, GPL met all of its covenant
requirements. At the statement of financial position date,
GPL still had GBP296,000 outstanding on the facility.
The Group's forecasts and projections to 31 December 2025,
taking account of reasonably possible changes in trading
performance, commodity prices and currency fluctuations,
indicates that the Group should be able to operate within
the level of its current cash flow earnings forecasted for at least
the next twelve to fourteen months from the date of approval
of the financial statements.
The directors have a reasonable expectation that the Group
has adequate resources to continue in operational existence
for the foreseeable future, thus continuing to adopt the going
concern basis of accounting in preparing the annual financial
statements.
The Group Budget was presented to the Board of Directors in
October 2024 for approval.
Licencing
The Group’s operations in Ghana and South Africa are
dependent on various licences and licensing requirements to
carry out its operations. The Group ensures they comply with
all reporting requirements under said licensing conditions
and remain in good standing with authorities governing these
licenses. Currently, all of Gold Recovery Ghana Limited’s licenses
have been renewed.
Although GPL’s mining right expired in May 2023, GPL does
not require a mining right in South Africa to continue its
operation and is conducting its operations under a Precious
Metals Refining License which only expires in November 2040.
As GPL does not have an identified mineral deposit and does
not extract any ore from a mineral deposit, it could not renew
its mining right per the Department of Mineral Resources and
Energy (‘DMRE’). We have applied to the relevant Government
authorities to convert the existing environmental management
plan in place to an integrated environmental authorization and
waste management licence. We await their response.
The water license for the South African operations was
approved in the previous financial year.
Employees
The directors have a participative management style with
frequent direct contact between junior and senior employees.
A two- way flow of information and feedback is maintained
through formal and informal meetings covering the Group
performance.
Financial instruments risk
Details of risks associated with the Group’s financial instruments
are given in note 32 of the financial statements. The Company
does not utilise any complex financial instruments.
On behalf of the board
Werner Klingenberg
Director
20 December 2024
Goldplat PLC | Annual Report and Accounts 2024
DIRECTORS' REPORT
18
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable laws
and regulations. Company law requires the Directors to prepare
financial statements for each financial year. Under that law
the Directors have elected to prepare the Company financial
statements in accordance with UK-adopted International
Accounting Standards and applicable laws. Under company law
the Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state
of affairs of the Group and Company and of the profit or loss of
the Group for that year.
In preparing these financial statements, the Directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether they have been prepared in accordance with
UK-adopted International Accounting Standards subject
to any material departures disclosed and explained in the
financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any
time the financial position of the Company and enable them
to ensure that the financial statements comply with the
requirements of the UK Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the Annual Report
and the financial statements are made available on a website.
Financial statements are published on the Group’s website in
accordance with legislation in the United Kingdom governing
the preparation and dissemination of financial statements,
which may vary from legislation in other jurisdictions.
The maintenance and integrity of the Group’s website is the
responsibility of the Directors. The Directors’ responsibility also
extends to the ongoing integrity of the financial statements
contained therein.
Going concern
The Directors have prepared and reviewed financial forecasts.
After due consideration of these forecasts and current cash
resources, the Directors consider that the Company and
the Group have adequate financial resources to continue in
operational existence for the foreseeable future (being a year of
at least 12 months from the date of this report), and for this
reason the financial statements have been prepared on a going
concern basis.
Statement of disclosure to auditor
So far as the Directors are aware:
• there is no relevant audit information of which the Group’s
and Company’s auditor is unaware; and
• all the Directors have taken steps that they ought to have
taken to make themselves aware of any relevant audit
information and to establish that the auditors are aware of
that information.
The financial statements were authorised for issue and
approved by the Board on 20 December 2024.
On behalf of the board
Werner Klingenberg
Director
20 December 2024
Statement of Directors' Responsibilities
Goldplat PLC | Annual Report and Accounts 2024
19
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Strategic Report
The directors present their Strategic Report for the Group for
the year ended 30 June 2024.
The Strategic Report is a statutory requirement under the UK
Companies Act 2006 (Strategic Report and Directors’ Report)
Regulations 2013 and is intended to provide fair and balanced
information that enables the directors to be satisfied that they
have complied with s172 of the UK Companies Act 2006 which
sets out the directors’ duty to promote the success of the Group.
Main Objects and Future Development
The Group’s main objective is to recover gold and other precious
metals from by-products discarded by primary producers and
in doing so, to return value to and provide an environmental
solution for the primary producers. Strategically we shall
continue to look beyond our current recovery operations for
further opportunities to apply our skillsets and resources.
The Group’s aim remains to return value to shareholders
through the strengthening of the sustainability of cashflow and
profitability through; growing its customer base in South Africa,
West Africa and further afield; increasing its ability to process
lower grade contaminated material through investing into and
improving processing methods; forming strategic partnerships
in industry; diversifying into processing of PGM contaminated
material; and finding a final deposition site for, and optimizing
the processing of the TSF material.
Principal Activity
The Group’s operating businesses are based in Africa and
comprise the production of gold and other precious metals,
by processing by-products of the mining industry. The Group
sources material to process not only in the African continent,
but also from gold producing countries outside Africa.
The Group’s primary operating base is situated near Benoni on
the East-Rand gold field in South Africa. As well as producing
gold, silver and platinum group metals from the by-products
of the mining industry, support for the Group's operating
subsidiary in Ghana is provided from South Africa. This business
is 91% owned by the Group.
The Group’s Ghana operation based in the Freeport of Tema
continues to develop as a processing hub to service gold
producing clients internationally and fully utilise the advantages
of the low tax rates in the country’s Freezone.
Review of business and financial performance
Information on the operations and financial position including
our analysis of our key performance indicators of the Group is
set out in the CEO and CFO Report, Chairman’s Statement and
the annexed financial statements.
The Board regularly reviews the risks to which the Group is
exposed and ensures through its meetings and regular reporting
that these risks are minimised as far as possible. The material
matters below are the principal risks and uncertainties identified
by Goldplat.
Material Matters
Material matters are those that can impact the Company’s
ability to create value in the short, medium and long-term as
well as topics that reflect our impact in terms of economic,
environmental and social (inclusive of human rights) issues.
We have established a formal materiality determination
process that follows the double materiality approach and takes
into account both the financial impacts as well as our impact
on the economy, society and environment of the risks and
opportunities that are relevant to our business.
Our process of determining material issues
We consider a matter to be material if it substantively
affects our ability to create value over the short, medium,
and long-term and/or has a significant impact by Goldplat on
the economy, society, or the environment.
We have reviewed and applied the following lenses in the
determination and assessment of our material matters:
• Risk register - Analysed Goldplat’s risks, including year on
year movement;
• Peer group analysis - Analysed Goldplat’s material matters
against a selected peer group;
• Investor relations reports - Analysed reports from investor
relations and identified pertinent ESG matters;
• Stakeholder engagements - Analysed minutes of meetings
from stakeholder engagements and extrapolated ESG
matters;
• Sector trends and thought leadership - Analysed industry
trends to identify current and emerging risks and
opportunities.
Once we determined matters that are material from a
stakeholder, operating environment and an enterprise risk
perspective, we consolidated these matters into the Goldplat
material matters profile that in turn informed our strategic
response and direction to these matters.
STRATEGIC REPORT
Strategic Report Continued
Goldplat PLC | Annual Report and Accounts 2024
20
Our material matters have been presented according to their impact on the financial sustainability of Goldplat and impact on the
economy, society and the environment.
Material Matter
1
License to operate
2
Waste and pollution management
(including tailings)
3
Health and Safety
4
Securing pipeline and developing
alternative reclamation resources
5
Traceability – responsible gold
(Supply chain – Social and environmental)
6
Water management
7
Circular economy
8
Climate change – carbon and resilience
9
Economic & geopolitical landscape
10
Transformation and pay equality
11
Energy supply
12
Innovation in mining –
extracting deeper value
13
Criminal activity
Our top material matters
The context of each material matter together with associated relevant stakeholder groups impacted, and strategic responses have
been set out in the table below:
Double Materiality
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
1
2
3
5
7
4
8
6
11
13
9
10
11
12
Goldplat PLC | Annual Report and Accounts 2024
21
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Material matter
Material matter context
Stakeholder
groups
Response to material matter
Read more
1. License to
operate
• Multiple licences need to be
maintained and complied with
in South Africa, Ghana and
jurisdictions we operate in.
• During the year our ability to
operate was impaired due to the
renewal of the gold export license
in Ghana being delayed.
• The compliance with regulatory
operating licenses will be
a key sustainability focus
area extending to social
licence to operate in as far as
environmental and social impacts
are concerned.
• Equity
investors and
significant
partners
• Governmental
bodies
• Community
• Workforce
• With the expiry of the mining
license of GPL, we are in the
process of converting this to a
waste license in South Africa;
• GPL obtained a permanent
license for the current temporary
air emission licence;
• Operating entities will continue
to manage the conditions and
reporting requirements of their
licenses;
• CEO’s report
from page 4
2. Waste and
pollution
management
(including
tailings)
• To ensure sustainability
of our operations from an
environmental, social and
governance perspective and also
from a licensing perspective, the
Group remains committed to
manage the impact its operation
can have on environment and
communities around us.
• Key to this is the management
of our tailing’s storage facility
and potential impact it can have
on the environment, manage
our water use and storm water
management, evaluate the
impact of our operation on air
quality and the safe handling of
chemicals used in our processes.
• Goldplat is focused on providing
an economic method for mines to
dispose of waste material while
adhering to their environmental
obligations and it is important
that our internal procedures align
with this focus
• Equity
investors and
significant
partners
• Suppliers of
gold bearing
material
• Governmental
bodies
• GPL – GBP1,748,000 has been
invested in a new TSF since 2021
to extend current capacity, but
also provide a better-lined facility
that can ensure improved water
reticulation and reduce seepage
in ground water;
• Goldplat operation will continue
to invest to improve the quality
of its emissions by continuous
measurement and testing,
improve chemical storage and
handling and to handle storm
water on our facilities.
• CEO’s report
from page 4
• Environmental
and Social
Report from
page 31
3. Health and
Safety
• The risk of employees sustaining
serious injuries or fatalities in the
workplace.
• Due to various type of materials
we handle and flexibility we apply
in processing these materials, the
importance of standard operating
procedures and review is even
more critical.
• Health and safety extend across
the value chain and includes
inbound transport contractors
and outsource security functions.
• Workforce
• Governmental
bodies
• Goldplat has the necessary safety
and health policies/procedures
in place to ensure our employees
are kept safe and injury free.
• The business has policies for PPE
and preventative measures that
are implemented on site.
• Environmental
and Social
Report from
page 31
STRATEGIC REPORT
Strategic Report Continued
Goldplat PLC | Annual Report and Accounts 2024
22
Material matter
Material matter context
Stakeholder
groups
Response to material matter
Read more
4. Securing
pipeline of
resources and
developing
alternative
reclamation
resources
The Group remains exposed to the
quantity and quality of by-product
material it receives from industry.
This exposure relates to:
• Number of major suppliers we
have per operational plant.
• Jurisdictions these major suppliers
operate in, and specific legislation
can impact their ability to supply
our plants with materials.
• Quantity and quality of feed
received as a result of mining
companies becoming more
efficient in its own processes
or mining operations closing
underground higher-grade
mines and focussing on surfaces
sources or mines closing existing
operations due to life of mine.
• Variability of raw material, with
various types of by-products,
that differ in type, quality, grade
and volume month to month.
The quantity of precious metals
contained in various types of
material and variability in the
amount that can be extracted can
result in fluctuations from month
to month in margins achieved.
• Notwithstanding the completion
of metallurgical test-work,
statistical analysis and pilot
studies indicating the results from
processing, the actual recovery
from material through a plant
might vary from the indicated
results and the quantity of
precious metals recovered or the
cost to recover might differ from
what was originally indicated.
• Securing viable and long-term
pipeline of resource is vital to
sustainability of the business.
Quality and quantity of pipeline is
a key success factor.
• Equity
investors and
significant
partners
• Suppliers of
gold bearing
material
• Partners and
partnerships
and alliances.
• GPL is focussed on increasing
its share of the gold by-
product market in SA, looking
at neighbouring countries
to increase market and also
expanding into other precious
metals and commodities.
• The focus of GRG in Ghana
remains on opening the West
African market. Currently most
feedstock is provided from within
Ghana and South America.
• The Group continues to
investigate and research different
types of discard and waste
sources from industry to increase
the flexibility in the types of
material it processes.
• Forming strategic partnerships
with other industry participants;
• GPL has an agreement with
DRDGOLD which secured short/
medium term low grade soil for
processing and pursuing tailings
retreatment.
• CEO’s report
from page 4
5. Traceability –
responsible
gold (*Supply
chain –
Social and
environmental)
• Due to the nature of our industry,
it is important that we ensure
material sourced has been
generated responsibility. A
responsible source is one where
the ownership can be determined
and methods through which
it has been generated can be
verified.
• Suppliers
• Smelters and
Refiners
• The Group follows the
responsible gold guidelines as
set-out by the London Bullion
Mark Association (“LBMA”) and
its processes are audited on a
bi-annual basis, to provide further
comfort to its suppliers, partners
and customers.
• Goldplat deals with 2 smelters
from Europe and a South African
smelter.
• CEO’s report
from page 4
Goldplat PLC | Annual Report and Accounts 2024
23
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Material matter
Material matter context
Stakeholder
groups
Response to material matter
Read more
6. Water
management
• Water availability and cost is a
key consideration considering
expected drought conditions due
to climate change, specifically in
GPL in which certain processes
require large volumes of water.
• GPL - water reuse and reduced
effluent/waste processes being
adopted in plant operations.
• GPL - the water use license for
the South African operations was
approved during the previous
financial year.
• Operations are 100% dependent
on third party utility providers for
water.
• The extraction and use of water
in Goldplat’s recovery processes,
according to the conditions set
out in the water license.
• Governmental
bodies
• Community
• GPL – with the use of the new
tailings facility the recirculation of
water should improve;
• Some of the processes within
Goldplat allow for recirculation
of water.
• GPL – in line with our water
use license we are looking
at upgrading our storm
water management to limit
contamination of water
resources but also increase water
recirculation.
• Environmental
and Social
Report from
page 31
7. Circular
economy
• Involves recovery of minerals
from mine waste providing a
non-extractive source of the
minerals while simultaneously
rehabilitating closed mine sites.
• Supports circular economy
concept of recycling, reuse and
rehabilitation in the mining cycle.
• Smelters and
refiners
• The role of Goldplat in the circular
economy is that more than half
of operations focus on mine
closure processing and balance to
extended processing of materials
during life of the mine.
• Goldplat uses 100% waste from
mine to recover and create the
final product.
• CEO’s report
from page 4
8. Climate
change
-carbon &
resilience
• Physical risks from climate
change includes potential drought
conditions affecting cost and
availability of water and flood
conditions affecting storm water
and tailings dams.
• Carbon emissions per ounce of
Gold or other minerals produced
could become an export
restriction as carbon content
tariffs and duties are imposed.
• Governmental
bodies
• Community
• The business is in the process
of developing a storm water
drainage system.
• The carbon emissions that were
emitted from back-up generators
in 2024 were assessed and were
determined to be immaterial
as the generators were hardly
utilised during the period.
• Goldplat still need to evaluate
the carbon costs of its operations
and potential credits its current
business also generate due to
them processing and recycling
waste materials from mines.
• Environmental
and Social
Report from
page 31
STRATEGIC REPORT
Strategic Report Continued
Goldplat PLC | Annual Report and Accounts 2024
24
Material matter
Material matter context
Stakeholder
groups
Response to material matter
Read more
9. Economic &
geopolitical
landscape
• Economical and market trends
that affect prices of commodities,
interest rates, inflations rates and
exchange rates.
• Geopolitical instability can cause
significant economic impacts and
interruptions in global supply
chain and preclude operations/
sourcing in restricted countries.
• Equity
investors and
significant
partners
• Governmental
bodies
• Goldplat has a deleveraged
balance sheet.
• The business has agility to
survive commodity price volatility
because of contracts having a
short cycle.
• Goldplat operates in South Africa
and Ghana which are politically
stable countries however they
do have challenging economic
circumstances.
• CEO’s report
from page 4
• CFO report
from page 8
10. Transformation
and pay
equality
• During the prior year GPL
repurchased shares from its BEE
minority shareholder, which
resulted in a reduction in the
Black Economic Empowerment
("BEE") ownership of GPL.
Although none of GPL's current
licenses to operate were
impacted by these changes, the
reduction in the BEE ownership
can potentially have an impact on
securing customers based on its
BEE level.
• Suppliers of
gold bearing
material
• Workforce
• The Group and GPL remain
cognisant of South African
government policy to advance
economic transformation
and enhance the economic
participation of black people in
South Africa and will continue to
look at means to do so through
ownership, management
representation, development of
employee skills, local enterprise
development and participation
in local socio-economic
development.
• CFO report
from page 8
11. Energy Supply • Reliance on Eskom for electricity
supply which is subject to
loadshedding at varying levels,
significant price increases and
high carbon content of electricity
supply.
• Alternative power supply being
sought through diesel generators
that in turn come with a high cost
of supply and carbon content.
• Governmental
bodies
• Investment in diesel generators
is a response to the electricity
supply problem in South Africa.
• Ghana currently has limited
energy supply issues.
• CEO’s report
from page 4
• Environmental
and Social
Report from
page 31
12. Innovation
in mining –
extracting
deeper value
• As part of addressing resource
risk identified as a material
matter under point 4 above,
innovative practices that can
improve recoverability of the
gold and minerals, or reduce
cost of recovery is critical to
sustain, diversify and growth our
business.
• Equity
investors and
significant
partners
• Suppliers of
gold bearing
material
• Goldplat does ongoing internal
research and development to
maximise value from available
resources and to develop new
potential stream of supply.
• CEO’s report
from page 4
13. Criminal
activity
• Criminal activity includes theft
of minerals, corruption and
cybercrimes.
• Noted that Goldplat is not subject
to scourge of illegal mining
operations of underground
mining operations.
• Goldplat has comprehensive
security and insurance in place
which largely off-sets the risk
of theft.
• Community
• The current security company in
place does not have any pending
cases linked to the business.
• There have been no significant
losses and no significant
business disruptions in the past
financial year.
Goldplat PLC | Annual Report and Accounts 2024
25
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Directors’ section 172 statement
The following disclosure describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) and forms
the Directors’ statement required under section 414CZA of the UK Companies Act 2006. This reporting requirement is made in
accordance with the corporate governance requirements.
The matters set out in section 172(1) (a) to (f) are that a Director must act in the way they consider, in good faith, would be most
likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other
matters) to:
(a)
the likely consequences of any decision in the long term;
(b)
the interests of the Company’s employees;
(c)
the need to foster the Company’s business relationships with suppliers, customers and others;
(d)
the impact of the Company’s operations on the community and the environment;
(e)
the desirability of the Company maintaining a reputation for high standards of business conduct; and
(f)
the need to act fairly between members of the Company
In the above Strategic Report section of this Annual Report, the Company has set out the short to long term strategic priorities and
described the plans to support their achievement.
We have split our analysis into two distinct sections, the first to address Stakeholder engagement, which provides information on
stakeholders, issues and methods of engagement, disclosed by stakeholder group. The second section addresses principal decisions
made by the Board and focuses on how the regard for stakeholders influenced decision-making.
STRATEGIC REPORT
Strategic Report Continued
Goldplat PLC | Annual Report and Accounts 2024
26
Section 1. Stakeholder mapping and engagement activities within the reporting year.
The Company continuously interacts with a variety of stakeholders, such as equity investors, the mining industries as suppliers of
gold bearing material, vendor partners, debt providers, legal advisors, workforce, government bodies, local community and refiners
of our products. The Company acknowledges the importance of all the stakeholders in the ultimate success of the Company and
strives to maintain a high level of transparency in its processes, as it deals in high value materials, and a high degree of reliance is
placed on these processes by the stakeholders. Engagement and communication is within the limitations of what can be disclosed to
the various stakeholders with regards to maintaining confidentiality and protecting commercially sensitive information.
Who: Key
Stakeholder
groups
Why: Why is it important to
engage this group
How: How Goldplat Plc engaged
with the stakeholder group
What: What came of the
engagement with stakeholder
group
Equity investors
and significant
partners
All substantial
shareholders
that own more
than 3% of the
Company’s
shares are listed
on Goldplat Plc
website.
The Group’s
largest subsidiary
in South Africa,
Goldplat
Recovery
(Pty) Limited,
has a non-
Goldplat group
shareholder
holding of 9.37%
of issued share
capital.
We are seeking to promote an
investor base that is interested in a
long term holding in the Company
and will support the Company in
achieving its strategic objectives
including the raising of funds to
support future growth as and when
opportunities present themselves.
Our South African partners have
significant influence on the Group’s
flagship operation and it is therefore
important to ensure that they are
aligned with the Group strategy.
Significant shareholders may affect
and influence Group strategy as a
result of their shareholding.
Substantial Shareholders:
As announced on October 2021,
Martin Ooi, the substantial
shareholder of the Company, was
appointed to the board.
Significant partners:
The South African BEE partners are
represented by Mr. Sango Ntsaluba
who acts as Chairman of the South
African Subsidiary.
Prospective and existing
investors:
• Regular operational and project
updates through Regulatory News
Service (“RNS”).
• The annual and Interim financial
reports.
• Roadshows and presentations.
• Paid for external research by Zeus
Capital
The substantial shareholder has a
shareholding of 28.85% at the time
of this report.
The Group has divested from its
mining segment, and will focus on
stabilising and growth of its recovery
business and the processing of the
Tailings Storage Facility (”TSF”) in
South Africa.
It is uncertain at this time how
future growth will need to be
supported by the shareholders.
The CEO presented at a number of
investor roadshows and one-to-one
meetings.
At the Company’s AGM on
29 December 2023, all resolutions
were duly passed.
Suppliers of
gold bearing
material:
These suppliers
are substantially
the primary
producers from
which we procure
discarded
precious metals,
which is the
main source
of revenue
with the only
exception being
our intention to
re-process our
own TSF in South
Africa.
Without the support of these
producers the Goldplat business
model could not succeed and
therefore can only succeed if
it satisfies the needs of these
suppliers.
To achieve this, Goldplat has to earn
the trust of the supplier, perform in
a transparent and ethical manner
and deliver an acceptable return.
Both parties are in the same
industry and due to the commercial
relationship between the parties,
ongoing engagement is in place.
Goldplat has a specific sourcing
department, that together with
management, maintain the
relationship on a day to day basis.
During the year we have increased
number of employees specifically
focussed on sourcing of material,
to expand our ability to reach new
clients and regularity of contact with
current clients.
Communication is with the plant
operations and management.
Supplies are normally delivered
based on a written contract which is
renewed from time to time.
Every mining company has its own
structures within which Goldplat has
to operate.
Historically we have mostly engaged
with Metallurgical and Financial
Management.
During the past few years the
directors have adopted a strategy
of engaging on the corporate level
rather than on mine level envisaging
a more standardised service to a
Mining group rather than dealing
with individual mines.
This strategy so far has been
relatively successful but the long
term success will be dependent on
how the different groups that supply
the Company prefers to contract.
Goldplat PLC | Annual Report and Accounts 2024
27
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Who: Key
Stakeholder
groups
Why: Why is it important to
engage this group
How: How Goldplat Plc engaged
with the stakeholder group
What: What came of the
engagement with stakeholder
group
Debt providers
The Company
entered into a
Nedbank facility
of GBP 3,000,000
which was
utilised to buy
back the minority
shareholding.
By Q2 FY2025,
the facility was
repaid in full.
Nedbank provides the facility to
enable the Company to buy back
the minority shareholding.
Regular meetings and status
updates were required by the debt
provider. A financial review based
on the audited financial statements
is required once a year to re-
evaluate the covenants.
During the year the Group
maintained all contracts in Ghana
and in South Africa. During the
year, we continued to repay the
outstanding facility to Nedbank.
We continue to discuss and evaluate
covenants where required. We have
also entered into a new facility
of GBP812,000 to finance the
acquisition of the Generator project
for the plant in South Africa.
Workforce:
The balance of
the Company’s
directors and
workforce are
based at the
operations in
South Africa and
Ghana.
The Company
also employs
a Sourcing
Manager based
in Brazil who
interacts with the
supplies in South
America.
The Group employs approximately
470 employees for the recovery
operations in South Africa and
Ghana.
All these countries have low levels
of employment and our employees
value the job creation and the
financial benefits of our activities.
The Company understands that
our employees have gained specific
skills which is vital to sustain our
unique recovery businesses
The Company’s long-term success
is dependent on the continued
support of our workforce.
The Company also recognises that
substantial risk is associated with
its senior management teams and
directors whose contributions
and knowledge of the business
is paramount to its success and
longevity.
The Company maintains an open
line of communication between
its employees, senior management
and Board of Directors.
In Q4 FY2024, the majority of
the employees of GPL all joined
a South African Union that
represents workers in the mining
and construction industries,
Association of Mineworkers and
Construction Union ("AMCU") and
GPL had to recognise this Union.
A collective wage agreement was
signed between AMCU and GPL in
June 2024. GPL and the Union meet
on a regular basis, currently every
2 months, to discuss operational,
financial, safety and any other
relevant topic.
During weekly management
meetings which is attended by
production staff on a rotating basis
feedback is given on the state of
finances, production issues etc.
Most employees are incentivised
and from that point of view their
objectives are aligned with those
of the Company.
The Company’s recovery operations
successfully re-negotiated all salary
and incentive packages effective
1 May 2024.
Directors salaries were adjusted by
the remuneration committee on
1 July 2024.
Staff turnover throughout the Group
is low.
STRATEGIC REPORT
Strategic Report Continued
Goldplat PLC | Annual Report and Accounts 2024
28
Who: Key
Stakeholder
groups
Why: Why is it important to
engage this group
How: How Goldplat Plc engaged
with the stakeholder group
What: What came of the
engagement with stakeholder
group
Governmental
bodies:
The Company is
impacted by local
governmental
organisations in
the UK, Brazil,
South Africa and
Ghana.
Goldplat operates in a number
of jurisdictions, principally South
Africa and Ghana, in a highly
regulated environment. Regulation
encompasses, inter alia, licensing
to process precious metals, royalty
agreements, the environment,
safety and health of employees
and contractors, ownership
of operations and community
development and participation.
Goldplat acknowledges that success
will be dependent on the Company’s
interaction with Government, the
workforce and the community in
addition to the interest of other
stakeholders as described in this
document.
Additionally, Goldplat seeks to meet
the Government’s aspirations of the
countries within which it operates
in terms of maximising the local
value- add of its operations and
employing and training workforce.
The interaction with stakeholders
directly influences supply sourcing
as well as employment aspirations
all of which is closely monitored by
Government institutions.
Each operation has a local board
with local representation which
interacts with the respective
Governments.
Mostly the interaction is by way of
formal reporting on:
• Production and Financial results
• Safety Reports and Statistics
• Environmental updates and
compliance reporting.
• Scorecards on procurement,
shareholding, women in mining
and community involvement and
local development programs.
The operations receive regular
visits from Government Inspectors
in respect of Health and Safety,
Machinery, Labour, Taxation
amongst others. Additionally,
advisers are retained in each
jurisdiction, including legal and
auditing.
Goldplat’s executive management
seeks to maintain regular and
open dialogue with all regulatory
authorities and, as appropriate,
local community representatives.
During the year the Group subsidiary
in South Africa received an Air
Emissions License. The South African
subsidiary also received a Water
Use License during the previous
period, that specifically allows
the construction of a new Tailings
Facility, which will extend the life of
the operation as well as allow it to
process the Current Facility to recover
the JORC resource of 82,000 ounces.
Engagement with the government
organisations in the United Kingdom,
South Africa and Ghana continues.
Goldplat PLC | Annual Report and Accounts 2024
29
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Who: Key
Stakeholder
groups
Why: Why is it important to
engage this group
How: How Goldplat Plc engaged
with the stakeholder group
What: What came of the
engagement with stakeholder
group
Community:
The local
community in
South Africa and
Ghana.
The community provides social
licence to operate no matter the
location.
In South Africa, the community
issues are regulated by the
Government as part of the South
African subsidiaries social and
labour plan. The objective is that
local communities must benefit
from employment opportunities,
local procurement and
infrastructure initiatives.
In Ghana, the community issues
are less prominent as the recovery
operation is located in the
Heavy Industrial area of Tema.
Nevertheless, the Government
expects the Company to employ
from the surrounding area, train its
employees and a training levy is also
paid to the Free Zone Board.
The Company has ongoing
engagements with the local
communities in which it operates.
In South Africa, the Company is
compliant with laws and charters,
dictated by government. We
continue to invest into infrastructure
projects and invested GBP87,000 to
build classrooms for a local primary
school during the year.
We view the local community as a
partner and maintaining a sustainable
business in the long term is
dependent on this good relationship.
GRL is currently non-compliant
in terms of Black Economic
Empowerment (''BEE''). However,
none of GRL's current licenses to
operate are impacted by these
changes. The Group and GRL
remain cognisant of South African
government policy to advance
economic transformation and
enhance the economic participation
of black people in South Africa and
will continue to look at means to do
so through ownership, management
representation, development of
employee skills, local enterprise
development and participation in
local socio-economic development.
Suppliers:
All suppliers
are important
to our Group
of companies
many of which
have had a long
relationship
with us.
Smelters and
Refiners:
Smelters and
Refiners take
delivery of
Doré bars and
concentrates for
final refining.
Goldplat, being in the precious
metals business, is a price taker and
therefore cost control is of utmost
importance especially due to the
cyclical nature of the metals we sell.
By building long term relationships
with our suppliers, we improve our
chances to survive the cycles.
Smelter and Refiners are important
as it removes the burden of
marketing gold and an efficient
refiner ensures the Group can
monetise its precious metal
deliveries quickly and efficiently.
Our procurement departments
continuously interact with our
suppliers and senior management
and directors meet with critical
suppliers at least once a year.
The Company has refining contracts
with a number of refiners.
Senior executives formally meet at
least once a year but interact on a
regular basis in normal course of
business.
During the year under review,
all suppliers continue to submit
material for processing. We also
entered into an agreement with
a new supplier in Ghana during
the year.
All contracts with Smelters and
Refiners remain in good standing
and relationships remain strong.
Due to delays in previous years, the
Group has spread where material
is sent to reduce the impact that
service delivery from smelters can
potentially have on our business.
This enables the Group to maintain
low stock levels and improves
critical cashflow to support earlier
settlement to suppliers of material.
STRATEGIC REPORT
Strategic Report Continued
Goldplat PLC | Annual Report and Accounts 2024
30
Principal decisions by the Board during the year
under review:
We define principal decisions as both those that have long-term
strategic impact and are material to the Group, but also those
that are significant to our key stakeholder groups. In making the
following principal decisions, the Board considered the outcome
from its stakeholder engagement, the need to maintain a
reputation for high standards of business conduct and the need
to act fairly between members of the Company.
The Board’s focus was predominantly on sustainability of the
current operations in Ghana & South America, including the
security of our license to operate in different jurisdictions,
maintaining our customer and supplier base, increasing market
share in South Africa, West Africa and South America.
The Board made the following strategic decisions in regard to
growth although investments made into these areas has not
been significant:
• The Ghanaian operation is going through a business model
change with the requirement to beneficiate all concentrates
to doré gold bars in country. As a result, the Board has
approved a GBP900,000 investment to increase plant capacity
and to increase the recovery of gold from concentrate on site.
• During the previous year, the Board agreed to acquire
land in South America, specifically Brazil, at a value of circa
GBP71,500. The decision was driven by the need to establish
an address in South America from which we can service our
clients. In time we plan to increase operational plant capacity
in Brazil to provide solutions for lower grade material not
processable at our other plants due to the cost of transport to
those facilities.
• During the year, the land was paid for in full. We are currently
awaiting the final approval from the ministry.
• The board believes that this investment supports the role we
aim to play in the circular economy in various jurisdictions,
whereby we maximize commodities recovered from waste
material left behind by primary mining. We also believe that
these activities should improve the impact left by primary
mining and through doing so create more opportunities for
communities.
• As a result of the electricity supply cuts during the year the
Board decided to supplement current electricity supply with
onsite diesel generators at a cost of GBP812,000. Refer to the
CEO’s report for further considerations in regards with the
decision.
On behalf of the board
Werner Klingenberg
Director
20 December 2024
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
31
Environmental and Social Impact Report
Goldplat is committed to sustainable development and recognises that the long-term sustainability of our business is dependent
upon not just the responsible stewardship in the protection of the environment but also the impact that our activities have on all
stakeholders involved.
Streamlined Environmental Report
The long-term sustainability of our business is dependent upon responsible stewardship in both the protection of the environment
and the efficient management of the sourcing, processing, extraction and depositing of by-products or other contaminated material,
and the sustainable use of resources for the benefit of all our stakeholders.
The responsible and sustainable management of the environment is part of the core of our business, being the processing and
recovery of gold and PGM’s from mine waste, slag, fine carbons and other by-products, effectively rehabilitating environments
impacted by historical mining operations.
However, we are aware that the Company can, and we do endeavour to improve our waste minimisation measures and energy
efficiencies, manage and mitigate the impact on natural ecosystems and ensure effective and appropriate land rehabilitation in areas
we operate.
Climate change - carbon & resilience
The impacts of climate change will have a direct impact on our operations over time, specifically in South Africa.
We are considering and reviewing these potential impacts on a continuous basis.
Physical risks
We have a water and energy intensive operation, and drought conditions can impact on availability of water, whilst flood conditions
can have a significant impact on our infrastructure, specifically our tailings deposition facility.
The construction of the new TSF has been completed on an engineering sign-off design and the necessary quality control applied
during the construction process. We have also contracted qualified management to oversee the deposition into the new tailings
facility to ensure stability and safety factors are maintained. We have made a decision to reprocess the old TSF through a third-party
plant after which it will be deposited on the third party TSF.
The construction of the new TSF should also improve the percentage of water returned to our processes reducing our dependence on
water from utility providers. Further to above, we also improving our storm water management, to separate clean and process water
more effectively and also capture storm water out of our plant for re-use.
Transition Risks
The energy usage might attract a carbon emissions charge in a form that will either increase our cost base or reduce our ability to
operate. We are considering and reviewing these potential impacts on a continuous basis.
Due to the increased uncertainty of electricity supply in the medium to longer term, we invested in diesel generators which will be
able to sustain operations in South Africa during electricity cuts. As a result of the limited supply and stability of the infrastructure to
our facility, solar and other renewable electricity supply was not considered a viable option at this stage.
On the 23rd of July 2024, the South African President signed into law the Climate Change Bill which sets out a national climate change
response, including mitigation and adaptation actions, which also constitutes South Africa’s fair contribution to the global climate
change response.
The law will result in a development of a list of the greenhouse gas emitting sectors and sub-sectors that are subject to sectoral
emissions targets. We will closely follow the developments of Climate Change Act and actively prepare to comply with relevant
regulations.
We are also monitoring the developments happening in Ghana, following the publishing of a roadmap for the adoption of the IFRS
Foundation’s ISSB standards (IFRS S1 and IFRS S2) in June 2024 by the Institute of Chartered Accountants Ghana (ICAG). We will
continue to assess Climate Change disclosure requirements in line with IFRS S2.
Energy Consumption and Greenhouse Gas Emissions
During the year the energy consumption used at our operations in South Africa and Ghana, including the fuel burned in our plant or
mobile heavy-duty and other vehicles, was 35.129GWh, which resulted in emissions in the order of 21736tCO2e.
The energy consumption and emissions were determined based on the electricity consumed per metered municipality supply, and
internal fuel usages. The fuel used by external parties to transport material to our premises for processing has not been included in
our energy consumption and emissions data.
Environmental and Social Report
STRATEGIC REPORT
Goldplat PLC | Annual Report and Accounts 2024
32
Environmental and Social Report Continued
For the emissions intensity ratio we use revenue as a quantifiable factor, as revenue should reflect the fluctuation we experience in
supply of material, which will also drive increases or decreases in our energy consumptions and emissions.
2024
2023
Measurement
Intensity Ratio
Measurement
Intensity Ratio
Energy Consumption
35.129Gwh
2382.70tCO2e/
GBP million
operating profit
34.738Gwh
4707.02tCO2e/
GBP million
operating profit
Greenhouse Gas Emissions
21736tCO2e
20725tCO2e
The increase in the greenhouse gas emissions during the year is due to less electricity supply cuts as loadshedding reduced in
2nd half of the year. Our revenue during the year was supported with high grade, high value materials of which processing is not that
energy intensive.
The methodology followed to compile the data includes the UK Environmental Reporting Guidelines (Defra, 2019), whilst we also used
the South African Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by Industry (2017) for
determining some GHG emission conversion factors.
Water and waste management
The various recovery processes used to extract value from the waste material processed require the use of water. The quantity of water
used in the processes depends on nature of the material and the recovery process used. The milling and Carbon-in-Leach circuits in
South Africa utilise the most water and we try and minimize these by recirculating the water used in the process back to the plant.
During the year a new tailings facility has been constructed, although it has only been commissioned after year end. The base of the facility
has been lined with a synthetic liner, with designed drains installed to limit the seepage of water into the ground, but also maximize the
recovery and return of process water for re-use. This should increase the percentage of water that will be re-used in our processes.
The water uses in our operation during the year is set-out in the table below:
2024
2023
Water management
Units
South Africa
Ghana
South Africa
Ghana
Potable water sourced from utility providers
mega litres
203
0.013
202
0.017
Surface and ground water extracted
mega litres
0
0
0
0
Recycled water (recirculated water)
mega litres
0
0
0
0
Other water sources
mega litres
0
0
0
0.12
Total water used for processing
mega litres
203
0.013
202
0.137
Conclusion
Our operations impact on the environment and its stakeholders is more than just our energy consumptions, greenhouse gas
emissions, tailings and water usage and extends to positive impacts around our circular economy and mine rehabilitation roles. We
will start building a database and establishing baselines in the year to come, to ensure we can appropriately monitor this over time,
set targets and develop strategies to reduce the impact of our businesses.
Our People
Our most significant social impact is the employment and growth opportunities that we offer to our 470 employees across our South
African and Ghanaian operations. We strive to ensure that our employees are rewarded at a level of fair remuneration relative to
market and living wage levels as well as ensuring that there is no discrimination in pay levels.
The diversity of our people needs to reflect the population dynamics in the countries that we operate in from a gender and race
perspective. We do recognise that there are imbalances that need to be addressed at gender and senior manager levels but we do
celebrate the diversity that has been developed in our people.
2024
2023
Transformation & pay equality
Units
South Africa
Ghana
South Africa
Ghana
Permanent employees and full time equivalents
#
339
131
348
106
Contractors
#
31
9
23
0
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
33
2024
2023
South Africa
Ghana
South Africa
Ghana
Diversity - gender
Units
Male
Female
Male
Female
Male
Female
Male
Female
Local Board
#
3
0
3
0
3
0
3
0
Senior management
#
3
1
5
0
3
1
5
0
Management
#
33
2
7
2
53
13
6
1
Employees
#
263
34
108
6
250
25
85
6
2024
2023
South Africa
Ghana
South Africa
Ghana
Diversity - race
Units
Black
White
Black
White
Black
White
Black
White
Local Board
#
2
1
0
3
2
1
0
3
Senior management
#
1
3
5
0
2
2
5
0
Management
#
28
7
9
0
39
27
7
0
Employees
#
273
24
114
0
271
4
91
0
2024
2023
Units
Male
Female
Male
Female
Group Board
#
5
0
5
0
We also recognise that developing and retaining the talent that we require to execute against our strategy and growth aspirations
requires continued investment in the training and development of our employees all the way from basic education enhancements
and on the job training all the way through to business school and engineering qualifications.
2024
2023
Technical skills development
South Africa
Ghana
South Africa
Ghana
Employee training spend
GBP65k
GBP22k
GBP56k
GBP33k
Health and Safety
Health and safety are imperative in the mining sector and always a priority in training, standards and processes that we have
put in place across all of our operations. Whilst the nature of our operations above ground does not carry the safety risks of an
underground mining operation, we treat safety as a number one imperative and priority in everything we do.
Through the application of our safety policies and procedures we have had no fatalities in the past 2 years and limited reportable
injuries. Our lost time injury frequency rates have also reduced since 2023 as a result of the increased focus on safety.
2024
2023
Health and safety
Units
South Africa
Ghana
South Africa
Ghana
Number of fatalities
Number
0
0
0
0
Reportable injuries
Number
12
2
15
3
Lost Time Injury Frequency Rate (LTIFR)
Number
2.34
1.42
13.5
4.35
Reportable Injury Frequency Rate (RIFR)
Number
0.19
0.4
1.37
0.77
STRATEGIC REPORT
Goldplat PLC | Annual Report and Accounts 2024
34
Our Social Investment
Since 2021 we have partnered with the Ekurhuleni Municipality (Brakpan Office) and the Department of Education
to build 2 new classrooms to be used as a Grade R Class at Sechaba Primary School, a school established in 1965,
in the vicinity of Vergenoeg in Kwa Thema next to Springs Ekurhuleni Municipality in South Africa.
The school is 56 years old and has never had any major renovations besides replacing the roof and the school yard
fencing. The new classrooms will replace the existing classrooms to allow more children to enrol for Grade R.
The group has spent close to GBP87,000 on this project of which GBP43,000 was on spent of procurement from the
local community. It has also created 138 local job opportunities for various individuals, including bricklayers, general
workers, cleaners, engineers, architects, construction workers. Ultimately, Grade R learners can go to class knowing
they will have access to education in a comfortable environment.
We handed over the complete infrastructure building to the Department of Education to maintain on 27 October
2024. This was done after a successful inspection by the department confirming that the classrooms are in line with
their desired needs.
Environmental and Social Report Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
35
Category
Topic
Sub-topic
Metric
Page # in the
report
Section in the
report
Governance
Board
composition
Board
independence
Composition of the board regarding:
executive or non-executive;
independence; tenure on the
governance body.
page 13
The Board
Ethical
behaviour
Lobbying
and political
contributions
Total monetary value of financial
and in-kind political contributions
made directly and indirectly by
the organisation, by country and
recipient/beneficiary.
page 14
Directors’ report
Tax
transparency
Tax paid
The total global tax borne by the
company.
page 2
Highlights
Social
Labour
standards
Diversity and
inclusion
Number of employees per employee
category by race and gender.
page 33
Social impact
report
Total headcount per type of
employees
page 33
Social impact
report
Community
Development
Skills for the
future
Employee training spend
page 33
Social impact
report
Economic
Contribution
Direct economic value generated
and distributed (EVG&D) on an
accrual basis, covering the basic
components for the organisation’s
global operations, ideally split
out by:
(i)
Revenue
(ii) Administrative expenses
(iii) Employee wages and benefits
(iv) Payments to providers of capital
(v) Payments to government (taxes)
page 34
Statements of
Profit or Loss
Health & Safety
Workplace health
and safety
Number of fatalities
page 33
Health and Safety
Number of reportable injuries
page 33
Health and Safety
Lost Time Injury Frequency Rate
(LTIFR)
page 33
Health and Safety
Reportable Injury Frequency Rate
(RIFR)
page 33
Health and Safety
Environmental
Climate change
GHG Emissions
Absolute gross greenhouse gas
emissions expressed as metric
tonnes of CO2 equivalent for:
Scope 1 and Scope 2
page 32
Environmental
report
Energy mix
Total energy use and share of
energy usage by generation type.
page 32
Environmental
report
Water security
Water usage
Total water consumption by sources
page 32
Environmental
report
Sustainability Index
INDEPENDENT AUDITOR'S REPORT
Goldplat PLC | Annual Report and Accounts 2024
36
Opinion
We have audited the financial statements of Goldplat plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended
30 June 2024 which comprise the Group and Company Statements of Financial Position, the Group Statement of Profit or Loss and
Other Comprehensive Income, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group
and Company Statements of Cash Flows and notes to the financial statements, including significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards
and as regards the Parent Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 June 2024
and of the group’s profit for the year then ended;
• the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;
• the parent company financial statements have been properly prepared in accordance with UK-adopted international accounting
standards and as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements
section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group’s and parent
company’s ability to continue to adopt the going concern basis of accounting included:
• Reviewing and discussing with management the cashflow forecast for the going concern period being twelve months from the
anticipated date of signing the financial statements and the corresponding key assumptions and inputs used;
• Comparing actual results for the year to forecasts to assess management’s forecasting abilities and the accuracy of its forecasts;
• Challenging management’s key assumptions and inputs of forecasted inflows and outflows in respect of committed costs;
• Testing the arithmetical accuracy of the cashflow forecasts; and
• Performing a sensitivity analysis on the key assumptions and inputs.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group's or parent company’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
Independent Auditor's Report to the members of Goldplat Plc
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
37
Our application of materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our
audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements,
both individually and in aggregate on the financial statements as a whole. Based on our professional judgement, we determined the
materiality thresholds for the financial statements as follows:
Group financial statements
Parent company financial
statements
Materiality for the financial
statements as a whole
£288,000 (2023: 160,000)
£70,000 (2023: 150,000)
Basis of materiality
5% (2023: 5%) of Profit Before Tax (“PBT”)
4.4% (2023: 1%) of net assets
Rationale Benchmark
We considered PBT to be the most relevant performance
indicator of the group. This is because the users of
group’s financial statements are primarily shareholders
and the group is not heavily reliant on external funding.
Furthermore, the group is no longer in the "growth
phase" and as such users of the financial statements are
concerned with the profitability of the group.
The strategy of the group, which also drives the key
performance indicators of management, is to return value
to the shareholders by creating sustainable cash flow
and profitability.
The parent company operates
primarily as a holding company and
as such, we consider net assets as
the key metric.
Rationale Percentage
The percentage applied to the benchmark has been selected to bring into scope all significant
classes of transactions, account balances and disclosures relevant for the shareholders,
and also to ensure that matters that would have a significant impact on the results were
appropriately considered.
Performance materiality
£200,000 (2023: 110,000)
£49,000 (2023: 105,000)
Performance materiality has been set at 70% (2023: 70%) of materiality for the financial
statements as a whole, for both the group and parent company.
In determining performance materiality, we considered the following factors:
• management’s attitude to correcting misstatements identified;
• our cumulative knowledge of the mining refinery industry and its specific trends;
• the consistency in the level of judgement required in key accounting estimates;
• the stability in key management personnel; and
• the level of centralisation in the group’s financial reporting controls and processes.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of
our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in
determining sample sizes.
For each significant component in the scope of our audit, we allocated a materiality based on the maximum aggregate component
materiality. The range of materiality allocated across components was between £70,000 and £200,000. Materiality for material
non‑significant components of £200,000 was calculated based on a percentage of group materiality.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £14,000 as well
as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons.
INDEPENDENT AUDITOR'S REPORT
Goldplat PLC | Annual Report and Accounts 2024
38
Our approach to the audit
In designing our audit, we determined materiality, as above, and assessed the risk of material misstatement in the financial
statements. In particular, we looked at areas involving significant accounting estimates and judgement by the directors and
considered future events that are inherently uncertain. We note that the group has a material goodwill balance which is subject
to impairment assessment. This requires a significant amount of judgement by management. We also addressed the risk of
management override of internal controls, including evaluating whether there was evidence of bias by management that represented
a risk of material misstatement due to fraud.
We determined that of the seven subsidiaries of the group there were two material and significant components. A full scope
audit was performed on the complete financial information of components which were assessed as material and significant.
No components were considered material but not significant.
For the remaining components not considered material, we performed a limited scope analytical review together with substantive
testing, as appropriate, on group audit risk areas applicable to those components based on their relative size, risks in the business
and our knowledge of the entity appropriate to respond to the risk of material misstatement.
The two material and significant components were located in the Republic of South Africa and Ghana. The components in these
locations were audited by firms outside of the PKF network operating under our instruction. The parent company audit was
performed in London, conducted by PKF Littlejohn LLP using a team with specific experience of auditing mining companies
and publicly listed entities. We interacted regularly with the component audit teams during all stages of the audit and we were
responsible for the scope and direction of the audit process. This, in conjunction with additional procedures performed, gave us
appropriate evidence for our opinion on the group and parent company financial statements.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our scope addressed this matter
Revenue recognition (Note 2.11 and 21)
Revenue recognised in the year amounted to
£72,691,000 (2023: £41,881,000).
The Group generates its revenue from the sale
of precious metals. The Group recognises this
revenue when the metals are delivered to the
refinery and the customer takes control of the
metals in line with the contractual terms.
The sales price is estimated by management
on a provisional basis as 95% of market price
at the end of the month in which the material
is delivered to the refiner. Consequently,
there is a risk that revenue is not recognised
in accordance with IFRS 15 Revenue from
Contracts with Customers. Specifically,
there is potential for cut off errors arising
around the timing of the recognition of
revenue and accuracy errors arising from the
sales transactions which require estimated
valuations to conclude on pricing and also
revision of the actual amount of metal sold.
Our work in this area included:
• Updating our understanding of the internal control environment in
operation for material revenue streams and undertaking walk-throughs to
ensure that the key controls within these systems have been operating in
the period under audit;
• Reviewing a sample of contracts with customers to verify the
appropriateness of the Group’s revenue recognition policy and the
requirements of IFRS 15;
• Substantive transactional testing of revenue recognised in the financial
statements by agreeing to:
• third-party gold valuation documents;
• delivery documentation; and
• gold prices and exchange rates from independent sources of information
• Assessing the appropriateness of the variable consideration restraint
applied in the recognition of provisional revenue;
• Verifying revenue recorded immediately before and after the reporting date
to the nominal ledger and assessing whether revenue had been recorded
in the correct period through a review of the documentation relating to
the independent assay valuations and deliveries to ensure the recognition
criteria was met; and
• Reviewing the financial statements for appropriateness of disclosures in
accordance with IFRS 15.
Independent Auditor's Report to the members of Goldplat Plc
Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
39
Key Audit Matter
How our scope addressed this matter
Inventory (Note 2.4 and 9)
The Group holds a material amount of
inventory at year end of £12,084,000
(2023: £20,134,000).
The Group’s inventories comprise raw materials
and precious metals on hand and in process.
Management must make an assessment at
each year end in order to establish whether or
not the carrying value of inventory is impaired,
including making estimates regarding costing,
grade of ore and gold prices.
Accordingly, there is the risk that the value of
inventory is not accounted for in line with IAS 2
Inventories and is thus materially misstated.
Specifically, there is a risk that inventory:
• has been valued using cost inputs and
allocated overheads which are not wholly
attributable to its production;
• has been valued with inputs such as the
volumes and grades that are not supported
by independent valuations from an expert;
and
• has fallen below its resalable value.
Our work in this area included:
• Requesting component auditors attend the subsidiaries’ stocktakes to
ensure that the stock exists, and the recording of stock quantities is
complete and accurate;
• Following up the stocktake attendance by confirming that counted items
are correctly included on the final stock sheets and that any discrepancies
arising are resolved;
• Discussing with management their methodologies for valuing inventory to
ensure these methodologies are consistent across the Group and are in line
with IAS 2. In conjunction with these discussions, the component auditors
will review the final stock volumes obtained from the third party laboratory
reports to ensure that these are materially in line with the volumes included
in the trial balance
• For a sample of stock items, reviewing purchase invoices and the cost
absorption work papers on a sample of inventory items held at the year end
to ensure that the prices used are accurate;
• For a sample of stock items, comparing the net realisable value (NRV) (e.g.,
the post year-end sales price) to the cost price on a sample of inventory
items to ensure that inventory is valued at the lower of cost and NRV;
• Reviewing slow moving inventory items and assessing whether the provision
for such items is complete and challenging the judgements and estimates
management made in their calculation; and
• Reviewing the associated disclosures in the financial statements and
assessing the appropriateness of such disclosures.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the group
and parent company financial statements does not cover the other information and, except to the extent otherwise explicitly stated
in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained
in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course
of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
INDEPENDENT AUDITOR'S REPORT
Goldplat PLC | Annual Report and Accounts 2024
40
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the group
and parent company financial statements and for being satisfied that they give a true and fair view, and for such internal control as
the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the group and parent company financial statements, the directors are responsible for assessing the group and the
parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below:
• We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and
regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding
in this regard through discussions with management and the application of our experience of the mining services sector.
• We determined the principal laws and regulations relevant to the Group and Company in this regard to be those arising from the;
• Companies Act 2006;
• UK-adopted international accounting standards;
• Quoted Companies Alliance Code;
• Local laws and regulations in the jurisdictions of the subsidiary entities;
• AIM Rules; and
• Health and Safety Laws.
• We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by
the group and parent company with those laws and regulations. These procedures included, but were not limited to:
• Holding discussions with management and the audit committee and considering any known or suspected instances of
non‑compliance with laws and regulations or fraud;
• Reviewing board meeting minutes;
• Reviewing Regulatory News Service (RNS) announcements;
• Ensuring adherence to the terms within the licences, including environmental conditions; and
• Reviewing legal and regulatory correspondence.
• We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to
the non-rebuttable presumption of a risk of fraud arising from management override of controls and revenue recognition, that
the potential for management bias was identified in relation to the valuation of goodwill and investments. We addressed this
by challenging the assumptions and judgements made by management when auditing that significant accounting estimate
and ensuring that there were adequate disclosures included in the respective notes including the disclosures within critical
accounting estimates.
Independent Auditor's Report to the members of Goldplat Plc
Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
41
• As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit
procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias;
and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
• As part of the group audit, we have communicated with component auditors the fraud risks associated with the Group and the
need for the component auditors to address the risk of fraud and any instances of non-compliance with laws and regulations
in their testing. To ensure that this has been completed, we have reviewed component auditor working papers in this area and
obtained responses to our group instructions from the component auditors.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a
material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance
with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely
to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than
error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone, other than the company and the company's members as a body, for our audit work, for this report, or for
the opinions we have formed.
Daniel Hutson (Senior Statutory Auditor)
15 Westferry Circus
For and on behalf of PKF Littlejohn LLP
Canary Wharf
Statutory Auditor
London E14 4HD
20 December 2024
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
42
Figures in £'000
Notes
Group
2024
Group
2023
Company
2024
Company
2023
Assets
Non–current assets
Property, plant and equipment
4
5,481
5,265
–
–
Right-of-use assets
17
1,004
352
–
–
Intangible assets
5
4,664
4,664
–
–
Investment in subsidiary or associate
6
1
1
20,274
20,274
Unlisted investments
20
1
63
–
–
Receivable on Kilimapesa sale
7
610
571
–
–
Other loans and receivables
8
159
145
–
–
Total non-current assets
11,920
11,061
20,274
20,274
Current assets
Inventories
9
12,084
20,134
–
–
Trade and other receivables
10
21,704
29,205
5
156
Current tax assets
15
–
58
–
–
Receivable on Kilimapesa sale
7
104
30
–
–
Other loans and receivables
8
21
19
–
–
Cash and cash equivalents
11
4,108
2,977
25
5
Total current assets
38,021
52,423
30
161
Total assets
49,941
63,484
20,304
20,435
Equity and liabilities
Equity
Share capital
12
1,678
1,678
1,678
1,678
Share premium
12
11,562
11,562
11,562
11,562
Capital Redemption Reserve
13
53
53
53
53
Retained income
16,530
12,328
2,641
1,978
Foreign exchange reserve
13
(10,436)
(9,401)
–
–
Total equity attributable to owners of the parent
19,387
16,220
15,934
15,271
Non–controlling interests
1,080
1,033
–
–
Total equity
20,467
17,253
15,934
15,271
Liabilities
Non–current liabilities
Provisions
14
742
743
–
–
Deferred tax liabilities
15
616
531
–
–
Interest bearing borrowings
16
–
285
–
–
Lease liabilities
17
518
37
–
–
Loan from group company
–
–
4,210
4,873
Total non-current liabilities
1,876
1,596
4,210
4,873
Statements of Financial Position – Group and Company
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
43
Figures in £'000
Notes
Group
2024
Group
2023
Company
2024
Company
2023
Current liabilities
Provisions
14
329
207
–
–
Trade and other payables
18
25,944
43,196
161
291
Current tax liabilities
15
394
–
–
–
Interest bearing borrowings
16
296
898
–
–
Lease liabilities
17
413
139
–
–
Bank overdraft
11
222
195
–
–
Total current liabilities
27,598
44,635
161
291
Total liabilities
29,474
46,231
4,370
5,164
Total equity and liabilities
49,941
63,484
20,304
20,435
The financial statements of Goldplat Plc, company number 05340664, were approved by the Board of Directors and authorised for
issue on 20 December 2024. They were signed on its behalf by: Werner Klingenberg, Director.
The notes on pages 56 to 76 are an integral part of these consolidated financial statements.
Werner Klingenberg
20 December 2024
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
44
Figures in £'000
Notes
Group
2024
Group
2023
Revenue
21
72,691
41,881
Cost of sales
(59,848)
(34,459)
Gross profit / (loss)
12,843
7,422
Other income / (loss)
38
(96)
Administrative expenses
23
(3,110)
(3,021)
Profit from operating activities
9,771
4,305
Finance income
24
102
69
Finance costs
24
(3,880)
(950)
Profit before tax
5,993
3,424
Income tax expense
26
(1,671)
(356)
Profit for the year
4,322
3,068
Profit for the year attributable to:
Owners of Parent
4,208
2,798
Non-controlling interest
114
270
4,322
3,068
Other comprehensive loss net of tax
Exchange differences on translation relating to the parent
Losses on exchange differences on translation
(1,081)
(3,231)
Total Exchange differences on translation
(1,081)
(3,231)
Exchange differences relating to the non-controlling interest
Losses on exchange differences on translation
38
(203)
Total other comprehensive income that will be reclassified to profit or loss
(1,043)
(3,434)
Total other comprehensive loss net of tax
(1,043)
(3,434)
Total comprehensive income / (loss)
3,279
(366)
Comprehensive (loss) / income attributable to:
Comprehensive income / (loss), attributable to owners of parent
3,128
(432)
Comprehensive income, attributable to non-controlling interests
151
66
3,279
(366)
Earnings per share attributable to owners of the parent during the year
Basic earnings per share
Basic earnings per share
27
2.51
1.67
Diluted earnings per share
Diluted earnings per share
27
2.49
1.65
The notes on pages 56 to 76 are an integral part of these consolidated financial statements.
The Company’s individual profit and loss account has been omitted from the Group’s annual financial statements having taken
advantage of the exemption not to disclose under Section 408(3) of the Companies Act 2006. The Company’s comprehensive income
for the year ended 30 June 2024 was GBP662,567 (2023 - GBP969,149).
Statements of Profit or Loss and
Other Comprehensive Income – Group
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
45
Figures in £'000
Share
Capital
Share
premium
Capital
Redemption
Reserve
Foreign
exchange
reserve
Retained
income
Attributable
to owners of
the parent
Non–
controlling
interests
Total
Balance at 1 July 2022
1,678
11,562
53
(6,170)
9,530
16,653
1,150
17,803
Changes in equity
Profit for the year
–
–
–
–
2,798
2,798
270
3,068
Other comprehensive loss
–
–
–
(3,231)
–
(3,231)
(203)
(3,434)
Total comprehensive
income for the year
–
–
–
(3,231)
2,798
(433)
67
(366)
Non-controlling interests in
subsidiary dividend
–
–
–
–
–
–
(184)
(184)
Balance at 30 June 2023
1,678
11,562
53
(9,401)
12,328
16,220
1,033
17,253
Figures in £'000
Share
Capital
Share
premium
Capital
Redemption
Reserve
Foreign
exchange
reserve
Retained
income
Attributable
to owners of
the parent
Non–
controlling
interests
Total
Balance at 1 July 2023
1,678
11,562
53
(9,401)
12,328
16,220
1,033
17,253
Changes in equity
Profit for the year
–
–
–
–
4,208
4,208
114
4,322
Other comprehensive loss
–
–
–
(1,081)
–
(1,081)
38
(1,043)
Increase (decrease) due to
adjustments
–
–
–
46
(6)
40
–
40
Total comprehensive
income for the year
–
–
–
(1,035)
4,202
3,167
152
3,319
Non-controlling interests in
subsidiary dividend
–
–
–
–
–
–
(105)
(105)
Balance at 30 June 2024
1,678
11,562
53
(10,436)
16,530
19,387
1,080
20,467
The notes on pages 56 to 76 are an integral part of these consolidated financial statements.
Statements of Changes in Equity – Group
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
46
Figures in £'000
Issued capital
Share premium
Capital
Redemption
Reserve
Retained
income
Total
Balance at 1 July 2022
1,678
11,562
53
1,009
14,302
Changes in equity
Profit for the year
–
–
–
969
969
Total comprehensive loss
–
–
–
969
969
Balance at 30 June 2023
1,678
11,562
53
1,978
15,271
Balance at 1 July 2023
1,678
11,562
53
1,978
15,271
Changes in equity
Profit for the year
–
–
–
663
663
Total comprehensive income
–
–
–
663
663
Balance at 30 June 2024
1,678
11,562
53
2,641
15,934
Notes
12
12
13
The notes on pages 56 to 76 are an integral part of these consolidated financial statements.
Statements of Changes in Equity – Company
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
47
Figures in £'000
Notes
Group
2024
Group
2023
Company
2024
Company
2023
Net cash flows from operations
33
4,629
4,511
740
1,079
Finance cost paid
(128)
(521)
1
31
Finance income received
21
–
–
–
Income taxes paid
(650)
(647)
(58)
(90)
Net cash flows from operating activities
3,872
3,343
683
1,020
Cash flows used in investing activities
Proceeds from sale of Caracal
–
727
–
–
Other cash payments to acquire equity or debt
instruments of other entities
–
(126)
–
–
Loan issued to Green Coal Technologies
(16)
–
–
–
Proceeds from sale of property, plant and equipment
4
30
–
–
Acquisition of property, plant and equipment
(923)
(1,911)
–
–
Cash flows used in investing activities
(935)
(1,280)
–
–
Cash flows used in financing activities
Payment of interest-bearing borrowings
(909)
(1,620)
–
–
Repayments of other financial liabilities
–
–
(663)
(1,031)
Repayment of leases
(259)
(287)
–
–
Payment of dividend by subsidiary to non- controlling
interest
(105)
(185)
–
–
Cash flows used in financing activities
(1,273)
(2,092)
(663)
(1,031)
Net increase / (decrease) in cash and cash equivalents
1,664
(29)
20
(11)
Cash and cash equivalents at beginning of the year
2,781
3,895
5
16
Foreign exchange movement on opening balance
(559)
(1,085)
–
–
Cash and cash equivalents at end of the year
11
3,886
2,781
25
5
The notes on pages 56 to 76 are an integral part of these consolidated financial statements.
Statements of Cash Flows – Group and Company
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
48
1. General information
Goldplat plc is a public company limited by shares domiciled and registered in England and Wales.
The address of the Company's registered office is Salisbury House, London Wall, London, the United Kingdom EC2M 5PS. The Group
primarily operates as a producer of precious metals on the African continent.
2. Basis of preparation and summary of significant accounting policies
Statement of compliance
The consolidated and separate financial statements have been prepared in accordance with UK - adopted International Accounting
Standards ("IAS") and the Companies Act 2006 as applicable to entities reporting in accordance with IAS; as applicable to entities
reporting in accordance with IFRS.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for derivative financial instruments that
have been measured at fair value.
Functional and presentation currency
These consolidated financial statements are presented in Pounds Sterling, which is considered by the directors to be the most
appropriate presentation currency to assist the users of the financial statements. All financial information presented in GBP has been
rounded to the nearest thousand, except when otherwise indicated.
The Group's subsidiaries' functional currency is considered to be the South African Rand (ZAR), Ghana Cedi (GHS) and the Company's
functional currency is Pounds Sterling (GBP) as these currencies mainly influences sales prices and expenses.
Use of estimates and judgements
The preparation of the consolidated and separate financial statements in conformity with UK - adopted IAS requires management to
make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying
values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
in which the estimates are revised if the revision affects only that period, or in the period of revision and future periods of the revision if
it affects both current and future periods.
Critical estimates and assumptions that have the most significant effect on the amounts recognised in the consolidated financial
statements and/or have a significant risk of resulting in a material adjustment within the next financial year are as follows:
• Carrying value of goodwill GBP4,664,000 (2022: GBP4,664,000) (Refer to Note 2.4 and 5.2)
• Inventory – precious metals on hand and in process to the value of GBP9,039,000 (2023: GBP16,618,000) (Refer to Note 9)
• Rehabilitation provision GBP742,000 (2023: GBP743,000) (Refer to Note 2.7 and 14)
• Useful economic lives (Refer to Note 2.3)
• Estimated revenue to the value of GBP17,660,000 (2023: GBP27,531,000) (Refer to Note 2.11)
2.1 Consolidation
Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date, which is the date on which control is
transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from
its activities. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable.
The Group measures goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the excess is
negative, a bargain purchase price is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts
generally are recognised in profit or loss.
Accounting Policies
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
49
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a
business combination are expensed as incurred.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as
equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of
the contingent consideration are recognised in profit or loss.
When share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree's employees
(acquiree's awards) and relate to past services, then all or a portion of the amount of the acquirer's replacement awards is included
in measuring the consideration transferred in the business combination. This determination is based on the market-based value of
the replacement awards compared with the market-based value of the acquiree's awards and the extent to which the replacement
awards relate to past and/or future service.
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised
losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the group's
accounting policies.
Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
On acquisition of a subsidiary, or where a subsidiary has been transferred from another entity within the group, the transaction is fair
valued at the date control of the subsidiary passes. The investment is the subsidiary is accounted for at cost, less any provision for
impairment, post transaction date.
On disposal of investments in subsidiaries, joint ventures and associated companies, the difference between net disposal proceeds
and the carrying amount of the investment is taken to the income statement.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements.
2.2 Foreign currency translation
Transactions and balances
Transactions entered into by Group entities in a currency other than the currency of the primary economic environment in which they
operate (their "functional currency") are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets
and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled
monetary assets and liabilities are recognised immediately in profit or loss.
Exchange gains and losses arising on the retranslation of monetary financial assets are treated as a separate component of the
change in fair value and recognised in profit or loss. Exchange gains and losses on non-monetary OCI financial assets form part of the
overall gain or loss in OCI recognised in respect of that financial instrument.
On consolidation, the results of overseas operations are translated into GBP at rates approximating to those ruling when the
transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those
operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets
at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated
in the foreign exchange reserve.
On loss of control of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to
that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the profit
or loss on disposal.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and the fair value adjustments arising on acquisition, are translated
to GBP at exchange rates at the reporting date. The income and expenses of foreign operations are translated to GBP at an annual
average exchange rate.
Foreign currency differences are recognised in other comprehensive income, and presented in the exchange reserve in equity.
However, if the foreign operation is a non-wholly owned subsidiary, then the relevant proportion of the translation difference is
allocated to the non-controlling interest. When a foreign operation is disposed of such that control, significant influence or joint
control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part
of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation
while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
50
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the
foreseeable future, foreign currency gains and losses arising from such item are considered to form part of a net investment in the
foreign operation and are recognised in other comprehensive income, and presented in the exchange reserve in equity. Goodwill and
fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operation and
translated at the closing rates.
2.3 Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment as well as leasehold assets are measured at cost less accumulated depreciation and
accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
The cost of the mining asset includes the costs of dismantling and removing the items and restoring the site on which they are
located.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognised in profit or loss.
Subsequent costs
Subsequent expenditure is analysed by its nature. Substantial modification done on property, plant and equipment is capitalised
only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs
and maintenance that relate to day-to-day repairs are expensed and substantial modifications are capitalised provided that IAS 16
recognition criteria has been met.
Depreciation
Items of property, plant and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives of each
component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that
the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated.
Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of
internally constructed assets, from the date that the asset is completed and ready for use.
Asset class
Useful life / depreciation rate
Buildings
20 years
Leasehold property
lease period
Plant and equipment
10 years
Motor vehicles
5 years
Office equipment
6 years
Environmental asset
life of mine
2.4 Intangible assets
Goodwill
Goodwill that arises on the acquisition of subsidiaries is presented within intangible assets. Intangible assets are initially measured at cost.
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it
relates. All other expenditure, including expenditure on internally generated goodwill, is recognised in profit or loss as incurred.
Amortisation
Except for goodwill, intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the
date that they are available for use. Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate. Amortisation is included within administrative expenses in profit or loss.
Accounting Policies Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
51
Inventories
Consumable stores and raw materials are measured at the lower of cost and net realisable value. The cost of inventories is based on
the weighted average basis and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other
costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and
selling expenses.
Precious Metals on Hand and in Process represents production on hand after the smelting process, gold contained in the elution
process, gold loaded carbon in carbon-in-leach ("CIL") and carbon-in-pulp ("CIP") processes, gravity concentrates, platinum group
metals ("PGM") concentrates and any form of precious metal in process where the quantum of the contained metal can be accurately
estimated. It is valued at the average production cost for the year, including amortisation, overheads and depreciation.
Broken ore represents blasted ore, underground or on stockpile, and are measured at the lower of cost and net realisable value.
The cost of broken ore is based on production costs and other costs incurred in bringing them to their existing location and condition.
Impairment
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the
financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate
that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the
higher of value in use and fair value less costs to sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest
group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs'). Goodwill
is allocated on initial recognition to each of the Group's CGUs that are expected to benefit from a business combination that gives rise
to the goodwill.
Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other
comprehensive income. An impairment loss recognised for goodwill is not reversed.
2.5 Financial instruments
Expected credit losses
The Group applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision
for trade and other receivables and contract assets. To measure expected credit losses on a collective basis, trade receivables and
contract assets are grouped based on similar credit risk and aging. The contract assets have similar risk characteristics to the trade
receivables for similar types of contracts.
Financial assets
The Group has adopted IFRS 9 from 1 July 2018. The standard introduced new classification and measurement models for financial assets.
The Group has classified GBP nil (2023: GBP nil) as fair value through profit or loss. The Group's as well as the Company's financial assets
measured at amortised cost comprise trade and other receivables, and cash and cash equivalents in the consolidated statement of
financial position.
Trade receivables and intra group balances are initially recognised at fair value. Impairment requirements use an expected credit loss
model to recognise an allowance. For receivables a simplified approach to measuring expected credit losses using a lifetime expected
loss allowance is available and has been adopted by the Group/Company. During this process the probability of the non-payment of the
receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime
expected credit loss for the receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision
account with the loss being reported within the consolidated statement of comprehensive income. On confirmation that the trade and intra
group receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.
Trade receivables will be derecognised when the balance has been settled to the Group or where the balance has been assigned to another
party, when such party has been settled.
Impairment provisions for receivables from related parties and loans to related parties are recognised on a forward looking expected credit
loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in
credit risk since initial recognition of the financial asset.
Financial liabilities
Financial liabilities are recognised in the Group's balance sheet when the Group becomes party to a contractual provision of the instrument.
Trade and other payables, including invoice financing creditors are recognised at their cost which approximates to their fair value.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
52
(i) Non-derivative financial liabilities
The Group initially recognises debt securities issued on the date that they are originated. All other financial liabilities (including
liabilities designated at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Group
becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
The Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are
recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial
liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise loans and
borrowings, finance lease obligations, and trade and other payables.
(ii) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity, net of any tax effects.
Other financial assets
Other financial assets are recognised initially at the fair value, including transaction costs. The asset will subsequently be measured
at fair value and are grouped into levels 1 to 3 based on the significance of the inputs used in the valuation. The financial assets from
the Kilimapesa sale has significant inputs and is therefore included in level 3.
Please see below more details on the above levels mentioned:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices) (Level 2);
• inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are
readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially recorded
at fair value and subsequently carried at amortised cost.
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with
original maturities of three months or less, and – for the purpose of the statement of cash flows - bank overdrafts. Bank overdrafts
are shown within trade and other payables in current liabilities on the consolidated statement of financial position.
2.6 Tax
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the Group statement of profit or
loss and other comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
reporting date and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amount
of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes
Deferred tax assets and liabilities
A deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises
from:
• the initial recognition of goodwill; or
• the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit (tax loss).
A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will
be available against which the deductible temporary difference can be utilised, unless the deferred tax asset arises from the initial
recognition of an asset or liability in a transaction that:
• is not a business combination; and
• at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
A deferred tax asset is recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable
that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.
Accounting Policies Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
53
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and deferred tax assets are made to reflect the tax consequences that would follow from
the manner in which it is expected, at the end of the reporting period, recovery or settlement if temporary differences will occur.
Deferred tax assets and liabilities are offset only where:
• there is a legally enforceable right to set off current tax assets against current tax liabilities; and
• the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the
same entity within the group or different taxable entities within the group which intend either to settle current tax liabilities and
assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Leases
Identifying leases
The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time
in exchange for consideration. Leases are those contracts that satisfy the following criteria:
(a) There is an identified asset;
(b) The Group obtains substantially all the economic benefits from use of the asset; and
(c) The Group has the right to direct use of the asset.
The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is
not identified as giving rise to a lease.
In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the
economic benefits that arise use of the asset, not those incidental to legal ownership or other potential benefits.
In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for
what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are
pre-determined due to the nature of the asset, the Group considers whether it was involved in the design of the asset in a way that
predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract
does not satisfy these criteria, the Group applies other applicable IFRSs rather than IFRS 16.
2.7 Provisions
A provision is recognised in the statement of financial position if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
The unwinding of the discount is recognised as finance cost.
Environmental obligation
In accordance with the Group's environmental policy and applicable legal requirements, a provision for site restoration in respect of
contaminated land is recognised when the land is contaminated.
The estimated long-term environmental obligations, comprising rehabilitation and mine closure, are based on the Group's
environmental management plans in compliance with current environmental and regulatory requirements. The amounts disclosed in
the financial statements as environmental assets and obligations include rehabilitation. The cost of rehabilitation projects undertaken,
which has been included in the provision estimate, are charged to the provision as incurred. The cost of current programs to prevent
and control future liabilities are charged to the Group statement of profit or loss and other comprehensive income as incurred.
2.8 Interest Bearing Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption value is taken to the income statement over
the period of the borrowings using the effective interest method.
Borrowings which are due to be settled within twelve months after the balance sheet date are included in current borrowings
in the balance sheet even though the original term was for a period longer than twelve months and an agreement to refinance,
or to reschedule payments, on a long-term basis is completed after the balance sheet date and before the financial statements are
authorised for issue. Other borrowings due to be settled more than twelve months after the balance sheet date are included in
non-current borrowings in the balance sheet.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
54
2.9 Share Redemption Reserve
A statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own
shares out of distributable profits or, in certain circumstances, from the proceeds of a fresh issue of shares. It is a reserve that cannot
be distributed to the shareholders and thus ensures the maintenance of the capital base of the company and protects the creditors'
buffer (which gives creditors confidence to invest in the company, e.g. as suppliers or debenture holders).
Subject to the company's articles, the capital redemption reserve may be:
• Used to pay up new shares to be allotted to members as fully paid bonus shares.
• Reduced (or cancelled) by means of a reduction of capital. In accordance with article 3 of the Companies (Reduction of Share
Capital) Order 2008, the reserve created on such reduction can be treated as a realised profit and, therefore, it may be distributed
to shareholders or used to buy back shares.
2.10 Investment held at fair value through profit/loss
Investments are classified as long term investments and current investments. Current investments are in the nature of current assets,
although the common practice may be to include them in investments. Investments other than current investments are classified as
long term investments, even though they may be readily marketable. If an investment is acquired, or partly acquired, by the issue of
shares or other securities, the acquisition cost is the fair value of the securities issued (which, in appropriate cases, may be indicated
by the issue price as determined by statutory authorities). The fair value may not necessarily be equal to the nominal or par value of
the securities issued.
For current investments, any reduction to fair value and any reversals of such reductions are included in the profit and
loss statement.
2.11 Revenue
Revenue from precious metal sales is recognised when transfer of control takes place when the product has been delivered under the
terms of the contract at the refiner or smelter premises. The sales price is estimated on a provisional basis as 95% of market price at
the end of the month in which the material is delivered to the refiner. Management estimate is based on evaluation of historical data to
ensure on average the revenue recognised is in line with what can reasonably be expected. Management does review this on an annual
basis and will adjust these estimates based on historical data, if and when required. The estimates used are in line with prior years.
Adjustments to the sales value occur based on the metal content which represent variable transaction price components up to the
date of final pricing. Final pricing is based on the monthly average market price in the month of the settlement. The period between
the final invoice and provisional invoice is generally between 30 days and 90 days but at a minimum 30 days.
The revenue adjustment mechanism embedded within provisional priced sales arrangements has the characteristics of a commodity
derivative. No forward rates are used to estimate the final pricing date. Variations between the price recorded at the date of delivery
to the refiner or smelter and the actual final price received are caused by changes in prevailing gold prices. Consequently, no changes
to the fair value of the embedded derivative is estimated within the provisional price adjustments and included as a component of
revenue as in management’s assessment, such fair values cannot be measured without reasonable effort and cost.
At the end of the year GBP17,660,000 (2023 - GBP27,531,000) of sales was included in trade receivables. This represent 24%
(2023 – 66%) of revenue for the year and is still exposed to potential fluctuation in gold price, foreign exchange rate and changes in
final assessed gold content which will impact the fair value. As the final assay provides more information related to the quantities sold
before the year end, the final assay for provisional sales finalised during the preparation of the financial statements are treated as
adjusting events and such adjustments are recognised in the current reporting period. As per our policy, the variability of the revenue
has been constrained to 95% of the gold price of which these values have been historically lower than actuals which ensures that
revenue is not likely to reverse. Gold content that is assessed and finalised up to the date of preparing the financial statement per
IAS 10 Events After the Reporting Period, is adjusted for in the statement of financial position.
There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed
location has occurred, the Group no longer has physical possession, has a right to payment on agreed terms and it is considered that
the Group has satisfied the performance obligation.
2.12 Employee benefits
Short-term employee benefits
Compensation paid to employees for the rendering of services are recognised at the undiscounted amount paid or expected to be
paid in the accounting period in which the services were rendered.
Where employees accumulate entitlement for paid absences, an expense is recognised as the additional amount that the entity
expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. In the case of
non-accumulating paid absences, the expense is recognised only when the absences occur.
The expected cost of profit-sharing and bonus payments are recognised when there is a present legal or constructive obligation to
make such payments as a result of past events, and a reliable estimate of the obligation can be made. A present obligation exists
when there is no realistic alternative but to make the payments.
Accounting Policies Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
55
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate entity
(a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay
all employee benefits relating to employee service in the current and prior periods.
When an employee has rendered service to an entity during a period, the contribution payable to a defined contribution plan in
exchange for that service is recognised:
• as a liability, after deducting any contribution already paid. Where the contribution already paid exceeds the contribution due for
service before the end of the reporting period, the excess is recognised as an asset to the extent that the prepayment will lead to a
reduction in future payments or a cash refund.
• as an expense, except where the amount is allowed as an inclusion in the cost of an asset.
2.13 Finance income and finance costs
Interest income is accrued on a time basis, by reference to the principal outstanding and the applicable effective interest rate.
Finance costs comprise interest payable on borrowings calculated using the effective interest rate method, interest receivable on
funds invested and foreign exchange gains and losses that are recognised in profit or loss.
2.14 Discontinued operations
Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the
post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the re-measurement to fair
value less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations.
2.15 Non-controlling interest
For business combinations completed prior to 1 January 2010, the Group initially recognised any non-controlling interest in the
acquiree at the non-controlling interest's proportionate share of the acquiree's net assets. For business combinations completed
on or after 1 January 2010 the Group has the choice, on a transaction by transaction basis, to initially recognise any non-controlling
interest in the acquiree which is a present ownership interest and entitles its holders to a proportionate share of the entity's net
assets in the event of liquidation at either acquisition date fair value or, at the present ownership instruments' proportionate share in
the recognised amounts of the acquiree's identifiable net assets. Other components of non-controlling interest such as outstanding
share options are generally measured at fair value. The group has not elected to take the option to use fair value in acquisitions
completed to date.
From 1 January 2010, the total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to
the non-controlling interests in proportion to their relative ownership interests. Before this date, unfunded losses in such subsidiaries
were attributed entirely to the group. In accordance with the transitional requirements of IAS 27 (2008), the carrying value of
non-controlling interests at the effective date of the amendment has not been restated.
Any changes in the non-controlling interest during the period (which will be a change of the non-controlling interest as a result of
a change in a present ownership interest which adjust the entitlement its holders had to a proportionate share of the subsidiaries
net assets in the event of liquidation), will be recognised by adjusting the present ownership instruments' proportionate share
in the recognised amounts of the subsidiary identifiable net assets. These adjustments, relating to the percentage change in the
proportionate share) will be recognised in the statement of changes in equity between the non- controlling interest reserve, retained
earnings and foreign currency translation reserve.
3. Changes in accounting policies and disclosures
3.1 New standards, amendments and interpretations adopted by the Group.
There were no new or amended accounting standards that required the Group to change its accounting policies for the year ended
30 June 2024 and no new standards, amendments or interpretations were adopted by the Group.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
56
3.2 New standards, amendments and interpretations not yet adopted by the Group.
The standards and interpretations that are relevant to the Group, issued, but not yet effective, up to the date of the Financial
Statements are listed below. The Group intends to adopt these standards, if applicable, when they become effective.
Standard
Impact on initial application
Effective for annual periods
beginning on or after
Amendments to IAS 1: Presentation of Financial
Statements: Classification of Liabilities as Current or
Non-current
Clarifies that the classification of liabilities as current or
non-current should be based on rights that exist at the
end of the reporting period.
1-Jan-24
Amendments to IAS 1: Classification of Liabilities as
Current or Non-current – Deferral of Effective Date
Amendments to IAS 1 Presentation of Financial
Statements: Non-current Liabilities with Covenants
Clarifies that only those covenants with which an entity must
comply on or before the end of the reporting period affect
the classification of a liability as current or non-current.
1-Jan-24
Amendments to IFRS 16 – Lease Liability in a Sale and
Leaseback
Specifies requirements relating to measuring the lease
liability in a sale and leaseback transaction after the date
of the transaction.
1-Jan-24
Amendments to IAS 7 Statement of Cash Flows and
IFRS 7 Financial Instruments: Disclosures: Supplier
Finance Arrangements
Requires an entity to provide additional disclosures about
its supplier finance arrangements.
1-Jan-24
Amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rate: Lack of Exchangeability
The amendments clarify how an entity should assess
whether a currency is exchangeable and how it should
determine a spot exchange rate when exchangeability is
lacking, as well as require the disclosure of information
that enables users of financial statements to understand
the impact of a currency not being exchangeable.
1-Jan-25
The Directors have evaluated the impact of transition to the above standards and do not consider that there will be a material impact
of transition on the financial statements.
4. Property, plant and equipment
Figures in £`000
Buildings
Leasehold
property
Machinery
Motor
vehicles
Office
equipment
Environ-
mental
asset
Total
Reconciliation for the year ended
30 June 2024 - Group
Balance at 1 July 2023
At cost
338
260
7,024
596
86
617
8,921
Accumulated depreciation
(168)
(144)
(2,618)
(365)
(45)
(316)
(3,656)
Net book value
170
117
4,406
231
41
301
5,265
Movements for the year ended
30 June 2024
Additions
2
–
864
13
10
50
939
Depreciation
(11)
(1)
(459)
(77)
(11)
(8)
(567)
Revaluation increase (decrease)
–
–
–
–
–
(186)
(186)
Recognition of Right of Use assets
–
–
–
179
–
–
179
Disposals
–
–
(8)
(2)
–
–
(10)
Effect of movements in exchange rates
(12)
(16)
(123)
7
(3)
9
(138)
Property, plant and equipment at
the end of the year
149
100
4,680
351
37
165
5,481
Closing balance at 30 June 2024
At cost
329
240
7,707
871
92
500
9,738
Accumulated depreciation
(180)
(141)
(3,027)
(520)
(55)
(335)
(4,258)
Net book value
149
100
4,680
351
37
165
5,481
Accounting Policies Continued
Introduction
Chairman's Statement
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CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
57
Figures in £`000
Buildings
Leasehold
property
Machinery
Motor
vehicles
Office
equipment
Environ-
mental
asset
Total
Reconciliation for the year ended
30 June 2023 - Group
Balance at 1 July 2022
At cost
346
208
6,754
646
65
695
8,714
Accumulated depreciation
(196)
(144)
(2,884)
(371)
(45)
(311)
(3,951)
Net book value
150
64
3 870
275
20
384
4,763
Movements for the year ended
30 June 2023
Additions
61
71
1,700
–
34
45
1,912
Depreciation
(10)
(1)
(362)
(63)
(7)
(64)
(507)
Recognition of Right of Use assets
–
–
132
98
–
–
230
Disposals
–
(9)
(23)
–
–
(32)
Effect of movements in exchange rates
(32)
(17)
(925)
(56)
(6)
(65)
(1,101)
Property, plant and equipment at
the end of the year
170
117
4,406
231
41
301
5,265
Closing balance at 30 June 2023
At cost
338
260
7,024
596
86
617
8,921
Accumulated depreciation
(168)
(144)
(2,618)
(365)
(45)
(316)
(3,656)
Net book value
170
117
4,406
231
41
301
5,265
5. Intangible assets
5.1 Reconciliation of changes in intangible assets
Figures in £`000
Goodwill
Total
Reconciliation for the year ended 30 June 2024 - Group
Balance at 1 July 2023
At cost
4,664
4,664
Net book value
4,664
4,664
Closing balance at 30 June 2024
At cost
4,664
4,664
Net book value
4,664
4,664
Reconciliation for the year ended 30 June 2023 - Group
Balance at 1 July 2022
At cost
4,664
4,664
Net book value
4,664
4,664
Closing balance at 30 June 2023
At cost
4,664
4,664
Net book value
4,664
4,664
5.2 Impairment Testing on Goodwill
Goodwill has been assessed during the current year for any impairment and it was concluded that the goodwill is fairly valued. The
recoverable amounts of the CGU's, South Africa and Ghana, were assessed by performing a discounted cashflow forecast model
and it was concluded that the recoverable amounts exceeded the goodwill value indicating no further impairment is required to be
recognised.
Key assumptions
The recoverable amounts for each CGU are based on value-in-use which is derived from discounted cash flow calculations. The key
assumptions applied in value-in-use calculations are those regarding forecast operating profits, gold prices and discount rates.
Notes to the Consolidated and Separate Financial Statements
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
58
Notes to the Consolidated and Separate Financial Statements
Continued
Forecast operating profits
For all CGU’s, the Group prepared cash flow projections derived from the most recent forecast for the period ending 31 December
2025. The Group impaired cash flow projections for a period of 5 years from 30 June 2024. Forecast revenue and direct costs are
based on past performance and expectations of future changes in the market, operating model and cost base.
Growth rates and terminal values
For the medium-term and terminal value a growth rate for South Africa and Ghana of 5% and 2% (USD terms) respectively (2023:
5% and 2%) was assumed.
Discount Rate
A pre-tax discount rates used to assess the forecast cashflows from CGU’s are derived from each CGU’s weighted average cost of
capital, taking into account specific factors relating to the country it operates in. These rates are reviewed annually by external
advisors and adjusted for the risks specific to the business being assessed and the mark in which the CGU operates. The discount
rates used during the year for South Africa and Ghana was 18.5% and 15.4% (2023: 18.9% and 15%) (USD terms) respectively.
Sensitivity analysis
The Group has applied sensitivities to assess whether any reasonable changes in assumptions could cause an impairment that
would be material to the consolidated Financial Statements. The table below identifies the amounts by which each of the following
assumptions would need to change to result in an impairment of the goodwill of any of the Group’s CGU’s:
Change in gold price
>2%
Increase in discount rate
>2%
Reduction in terminal growth rate
20% - 25%
This demonstrates that less than a 2% change in the gold price, less than a 2% increase in the discount rate and less than a 20%
reduction in the terminal growth rate would not cause an impairment. The above sensitivities do not include any valuation of the
JORC resource of 82,000 oz in South Africa (tailings facility).
The Directors therefore believe that no impairment is required.
6. Investment in subsidiary or associate
6.1 Investments in subsidiaries
Name of subsidiary
Current year
Holding
Prior year
Holding
Address
Gold Mineral Resources Limited
100%
100%
Trafalgar Court, Admiral Park, St Peter Port, Guernsey
Goldplat Recovery (Pty) Ltd
91%
91%
Daveyton Road, New Modder, Benoni, 1501, South Africa
Gold Recovery Ghana Limited
100%
100%
BCB Legacy House, 1 Nii Amugi Avenue, East Adabraka, Accra,
Ghana
Nyieme Gold SARL
100%
100%
Trafalgar Court, Admiral Park, St Peter Port, Guernsey
Gold Recovery Brasil LTDA
100%
100%
Av. Contorno, 2905, Santa Efigenia, 30.110-915, Belo Horizonte/
Minas Gerais, Brazil
Gold Recovery Peru SAC
100%
100%
Calle Martir Jose Olaya, 129, 1101, Miraflores, Lima, 15074, Peru
Midas Gold SARL
100%
100%
Trafalgar Court, Admiral Park, St Peter Port, Guernsey
GRG Tolling Limited
100%
100%
Plot A/55/4 Tema Industrial Area, Tema, Ghana
6.2 Amounts per the statements of financial position - Group and Company
Figures in £`000
Group
2024
Group
2023
Company
2024
Company
2023
Investment in subsidiary or associate
1
1
20,274
20,268
1
1
20,274
20,274
The investments in subsidiaries, joint ventures and associates of the Company relate mainly to the investments in GMR, who in turn
holds investment in GRG and GPR.
Introduction
Chairman's Statement
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The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
59
The value of the investment by Goldplat Plc in GMR and GPR was assessed separately due to these being two different cashflow
units being held by Goldplat Plc. The recoverable amounts of the CGU's were assessed by performing a net present valuation on
the South African and Ghana future cashflows and it was concluded that the recoverable amounts supported the investment in
subsidiaries for the current year.
7. Receivable on Kilimapesa sale
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Receivable from Kilimapesa sale
714
601
–
–
The receivable relates to the 1% net smelter royalty on production of Kilimapesa to the maximum of USD1,500,000.
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Non-current assets
610
571
–
–
Current assets
104
30
–
–
714
601
–
–
Other financial assets are recognised initially at the fair value, including transaction costs. The asset will subsequently be measured at
fair value and are grouped into levels 1 to 3 based on the degree to which the fair value is observable. The financial assets from the
Kilimapesa sale has unobservable inputs and is therefore included in level 3.
Included in the sales price of Kilimapesa is USD1,500,000 in future royalties based on the amount of gold sold by the purchaser. The
below valuation was done in order to calculate the GBP714,000 financial asset.
The amount of gold ounces sold will be dependent on various factors including capital allocation, production and sales scheduling and
capital availability on Kilimapesa mine. We used forecasts available in the market as at end of the year but actual results might vary.
Valuation technique used
Key unobservable inputs
Relationship between unobservable
inputs to fair value
Fair value is determined by making the
following assumptions:
• The estimated gold sold per year
• The average gold price
• The selling costs
• 1% net smelter royalties are payable
annually
Discount rate of 13% has been applied
compared to the discount rates used for
Ghana and South Africa of 15.4% and 18.5%
respectively due to lower country risk.
Gold sales: oz
• 2025: 470 oz
• 2026: 15,000 oz
• 2027: 15,000 oz
• 2028: 15,000 oz
• 2029: 15,000 oz
• 2030: 15,000 oz
• 2031: 8,908 oz (balancing figure to get
to USD1,500,000 in royalties)
The average gold price of 2,300 USD/oz
is used
Based on historical figures provided, an
average selling cost of 5% is applied
The higher the discount rate, the lower
the fair value
The higher the production level, the
higher the fair value
The higher the gold price, the higher the
value The higher the costs, the lower the
value
8. Other loans and receivables
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Aurelian receivable
164
164
–
–
Green Coal Technologies receivable
16
–
–
–
180
164
–
–
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
60
Notes to the Consolidated and Separate Financial Statements
Continued
The R6 million Aurelian vendor loan receivable has no fixed payment terms and is interest free. The 60 shares to which the loan
relates are held by an agent in an escrow account. Title to the shares will only be released once the residual shares consideration has
been discharged in full. The consideration for the shares is to be received in the form of distributions to be made and withheld by the
company in lieu of the loan.
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Non-current assets
159
145
–
–
Current assets
21
19
–
–
180
164
–
–
9. Inventories
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Raw materials
1,874
2,462
–
–
Consumable stores
1,172
1,054
–
–
Precious metals on hand and in process
9,038
16,618
–
–
12,084
20,134
–
–
Inventories are initially recognised at cost, and subsequently measured at the lower of cost and net realisable value. Cost comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Weighted average cost is used to determine the cost of ordinarily interchangeable items.
During the year inventory (which include all production costs) expensed through the statement of profit and loss was GBP61,346,000
(2023 – GBP34,459,000)
10. Trade and other receivables
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Trade receivables
19,668
27,645
1
128
Provision for impairment of receivables
(28)
(114)
–
–
Trade receivables - net
19,640
27,531
1
128
Sundry debtors
1
1
–
–
Prepaid expenses
29
77
1
10
Other receivables
1,858
1,404
–
–
Value added tax
176
192
4
18
21,704
29,205
5
156
At 30 June 2024, GBP14,500,507 (2023: GBP19,054,099) of trade receivables had been sold to a provider of invoice discounting and
debt factoring services. The Group is committed to underwrite any of the debts transferred and therefore continues to recognise
the debts sold within trade receivables until the debtors repay or default. Since the trade receivables continue to be recognised, the
business model of the Group is not affected. The proceeds from transferring the debts of GBP14,500,507 (2023: GBP19,054,099) are
included in other financial liabilities until the debts are collected or the Group makes good any losses incurred by the service provider.
Movements in the allowance for doubtful debt for trade receivables are as follows:
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Opening balance
114
14
–
–
Current year adjustment
(86)
100
–
–
Closing balance
28
114
–
–
The overall risk as at 30 June 2024 that the debtors will not meet their payment obligations in respect of the amount of trade
receivables recognised in the balance sheet whether past due or not and not provided, is very low. The 2023 increase related to
prepayments written off in Goldplat Recovery (Pty) Ltd relating to an ongoing dispute with a supplier.
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
61
The Company uses the simplified approach for trade accounts receivable and for contract assets. The Company considers a financial
asset in default when it is unlikely to receive the outstanding contractual amounts in full. The probability of default takes into
consideration financial and non-financial information about customers. The consideration is forward-looking and verified using
historical credit losses. Trade accounts receivable are assumed to be credit-impaired if it is unlikely that the customer will fulfil
its obligations.
The lifetime estimated credit loss is evaluated and applied to the outstanding trade receivables at end of the year. The estimated
credit loss was adjusted for in the current year.
The impairment allowance for bad debts are calculated using a lifetime expected credit loss model in accordance with IFRS 9. There
are no receivables subjected to a significant increase in credit loss. The actual doubtful debt allowance for the year end to June 2024
was GBP27,935 (2023: GBP113,963) and the comparatives have not been restated.
11. Cash and cash equivalents
11.1 Net cash and cash equivalents
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Balances with banks
4,108
2,977
25
5
Bank overdrafts
(222)
(195)
–
–
3,886
2,782
25
5
12. Share capital, premium and redemption reserve
12.1 Authorised and issued share capital
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Issued
Ordinary shares
1,678
1,678
1,678
1,678
1,678
1,678
1,678
1,678
Share premium
11,562
11,562
11,562
11,562
13,240
13,240
13,240
13,240
13. Reserves
Ordinary shares
All shares rank equally with regard to the Company’s residual assets. The holders of ordinary shares are entitled to receive dividends
as declared from time to time and are entitled to one vote per share at meetings of the Company.
Share premium
Represents excess paid above nominal value on historical shares issued.
Exchange reserve
The exchange reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign
operations.
Non-controlling interest
Relates to the portion of equity owned by minority shareholders.
Capital Redemption Reserve
Portion of share capital repurchased by the Company.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
62
Notes to the Consolidated and Separate Financial Statements
Continued
14. Provisions
Figures in £'000
Environmental
Other
Total
Balance at 1 July 2023
743
207
950
(Decrease)/Increase in provision
(28)
122
94
Effect of foreign exchange movements
27
–
27
Balance at 30 June 2024
742
329
1,071
Balance at 1 July 2022
811
208
1,019
Increase in provision
78
(1)
77
Effect of foreign exchange movements
(146)
–
(146)
Balance at 30 June 2023
743
207
950
Non-current portion
742
Current portion
329
Total provisions
1,071
In terms of section 54 of the regulations of the Minerals Resource and Petroleum Act of 2002, in South Africa, a Quantum of Financial
Provisioning is required for activities performed under the mining lease. Quantum of Financial Provisioning requires a detailed
itemization of actual costs relating to the premature closure, decommissioning and final closure and post closure management.
The Company makes use of an independent consultant to calculate the detail itemized actual current costs for rehabilitation and
to evaluate any critical estimates and assumptions. The Quantum of Financial Provisioning has been approved by the Department
of Minerals Resources in South Africa. The Company has insured the obligation and has ceded the proceeds from the policy to the
Department of Minerals Resources. During the current year, the provision held in GPL was reassessed by using an external expert
and it was concluded that due to the additional capital expenditure that has taken place over the financial year, the provision had to
be increased to account for the additional capital incurred.
Other provisions relate to certain tax claims in the Group subsidiaries. The Group is involved in a process of arbitration dispute
resolution ("ADR") in Kenya with respect to a claim that has been brought forward against Kilimapesa Gold (Pty) Limited, a subsidiary
of Caracal Gold Plc ("Caracal Gold"), as agent of Gold Minerals Resources Limited ("subsidiary of Goldplat Plc"), regarding the sale
of Kilimapesa by Gold Minerals Resources Limited to Caracal Gold. Per the ADR, the Company has agreed to settle USD320,000 in
3 instalments. The final instalment was paid on 15 November 2024.
15. Deferred and Current tax
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Deferred tax liabilities:
- Deferred tax liability to be recovered after more than 12 months
(616)
(531)
–
–
Net deferred tax liabilities
(616)
(531)
–
–
Group
Deferred tax
Opening balance at 1 July 2023
(531)
Current charge - temporary difference
(73)
Effect of foreign exchange movements
(7)
Prior year adjustment
(5)
Closing balance at 30 June 2024
(616)
Opening balance at 1 July 2022
(1 013)
Current charge - temporary difference
309
Effect of foreign exchange movements
174
Closing balance at 30 June 2023
(531)
Comprising:
2024
2024
Capital allowances
529
Unrelieved tax losses and provisions
87
616
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
63
2023
Capital allowances
468
Unrelieved tax losses and provisions
63
531
The analysis of current tax assets and current tax liabilities is as follows:
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Current tax (liabilities)/assets:
- Current tax (liability)/asset to be recovered within 12 months
(394)
(58)
–
–
Net deferred tax liabilities/assets
(394)
(58)
–
–
Group
Deferred tax
Opening balance at 1 July 2023
58
Current tax charge
(1,591)
Impairment of tax receivable
(81)
Foreign exchange movements
570
Income tax paid
650
Closing balance at 30 June 2024
(394)
Opening balance at 1 July 2022
100
Current tax charge
(689)
Income tax paid
647
Closing balance at 30 June 2023
58
16. Interest Bearing Borrowings
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Interest Bearing Borrowings
296
1 183
–
–
Non-current portion of interest bearing borrowings
–
285
–
–
Current portion of interest bearing borrowings
296
898
–
–
296
1,183
–
–
During 2022, through GPL, the Group entered into a ZAR denominated bank facility of ZAR 60 million (approximately GBP3.02 million)
with Nedbank, to finance the repurchase of shares from minorities in South Africa. The bank facility is repayable monthly over
36 months and attracts interest at South African Prime Rate plus 1.75%.
GPL provided security over its debtors as well as a negative pledge over its moveable and any immovable property, with a general
notarial bond registered over all movable assets. The Company entered into a limited suretyship for ZAR 60 million, in favour of
Nedbank. The facility is subject to various covenants, requiring certain levels of free cashflow, profitability, solvency and equity levels.
Security provided by GPL:
For the obligations of Goldplat Recovery (Pty) Ltd, the following will apply:
i.
A security session of cession of all present and future debtors; and
ii. A Negative Pledge over moveable and any immovable property by Goldplat Recovery (Pty) Ltd.
iii. Limited suretyships of R 60 million (sixty million rand) (incorporating cessions of claims), in favour of Nedbank, by Goldplat Plc.
iv. The registration of a general notarial bond over all moveable assets, reflecting Goldplat Recovery (Pty) Ltd as mortgagor and
Nedbank as mortgagee, of R60 million (sixty million rand).
v. The security will be required as continuing security for all the Borrower Facilities of which the Borrower avails itself to from time to
time and for the obligations of every Security Provider (as defined below), where applicable.
vi. For the purposes of this Facility Letter, any party other than the Borrower who provides security as described above will be
referred to as a ‘Security Provider’.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
64
Notes to the Consolidated and Separate Financial Statements
Continued
17. Lease liabilities
17.1 Lease liabilities comprise:
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Lease obligation
931
176
–
–
Plant, machinery and motor vehicles
–
–
Opening balance on 1 July 2023/2022
176
370
–
–
Additions
920
170
–
–
Interest expense
84
23
–
–
Lease payment
(259)
(310)
–
–
Foreign exchange movements
10
(77)
–
–
Closing balance on 30 June 2024/2023
931
176
–
–
Non-current liabilities
518
37
–
–
Current liabilities
413
139
–
–
931
176
–
–
17.2 Right of use asset
Figures in £'000
Group
2024
Group
2023
Plant, machinery and motor vehicles
Opening balance on 1 July 2023/2022
352
576
Additions
904
170
Amortisation
(58)
(71)
Disposals
–
–
Transferred to Property, Plant & Equipment
(179)
(230)
Foreign exchange movements
(15)
(94)
Closing balance on 30 June 2024/2023
1,004
352
The average lease term is 2.5 years. For the year ended 30 June 2024, the average effective borrowing rate was 7.50%. Interest rates
are variable over the lease term and vary according to the South African prime interest rate.
The current year's interest fee relating to the leases of these assets was GBP85,000 (2023: GBP23,000). These assets mostly relate to
motor vehicles and forklifts. The Group’s lease liabilities are secured over the leased assets.
18. Trade and other payables
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Trade creditors
5 643
5 974
161
291
Anumso license accrual
369
369
–
–
Accrued liabilities
5 431
17 799
–
–
Invoice financing creditor
14 501
19 054
–
–
Total trade and other payables
25 944
43 196
161
291
19. Financial Assets and Liabilities
Carrying amount of financial assets by category
Figures in £'000
At amortised
cost
Total
Year ended 30 June 2024 - Group
Unlisted investments (Note 20)
1
1
Receivable on Kilimapesa sale (Note 8)
714
714
Other loans and receivables (Note 8)
180
180
Trade and other receivables excluding non-financial assets (Note 10)
21,498
21,498
Cash and cash equivalents (Note 11)
4,108
4,108
26,501
26,501
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
65
Figures in £'000
At amortised
cost
Total
Year ended 30 June 2023 - Group
Unlisted investments (Note 20)
63
63
Receivable on Kilimapesa sale (Note 8)
601
601
Other loans and receivables (Note 8)
164
164
Trade and other receivables excluding non-financial assets (Note 10)
28,935
28,935
Cash and cash equivalents (Note 11)
2,977
2,977
32,740
32,740
Carrying amount of financial liabilities by category
Figures in £'000
At amortised
cost
Total
Year ended 30 June 2024 - Group
Interest Bearing Borrowings (Note 18)
296
296
Lease liabilities (Note 19)
931
931
Trade and other payables excluding non-financial liabilities (Note 20)
25,944
25,944
27,171
27,171
Figures in £'000
At amortised
cost
Total
Year ended 30 June 2023 - Group
Interest Bearing Borrowings (Note 18)
1,183
1,183
Lease liabilities (Note 19)
176
176
Trade and other payables excluding non-financial liabilities (Note 20)
43,196
43,196
44,555
44,555
20. Unlisted investments
20.1 Unlisted investments comprise the following balances
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Unlisted investments - Green Coal Technologies Pty Ltd
1
63
–
–
20.2 Unlisted investments designated at fair value through profit or loss
The entity classifies the following financial asset at fair value through profit or loss (FVPL):
• debt investments that do not qualify for measurement at either amortised cost,
• equity investments that are held for trading, and
• equity investments for which the entity has not elected to recognise fair value gains and losses through OCI.
The amount of change in the fair value that is attributable to changes in the credit risk of the financial asset:
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
- during the period
(62)
(63)
–
–
- cumulatively
(125)
(63)
–
–
21. Revenue
Figures in £'000
Group
2024
Group
2023
Sale of precious metals - Recovery operations
72,209
41,652
Processing fees charged to customers
482
229
Total revenue
72,691
41,881
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
66
Major customer
Revenues for the recovery operations were mainly derived from 4 different customers as indicated below
2024
2023
Figures in £'000
%
Value
%
Value
South African Recovery Operations
Other
0%
–
0%
35
Customer 1
59%
11,206
13%
3,438
Customer 2
41%
7,930
44%
11,883
Customer 3
0%
–
43%
11,638
Total
100%
19,136
100%
26,994
West African Recovery Operations
Other
0%
–
2%
296
Customer 1
16%
8,569
3%
453
Customer 2
3%
1,607
10%
1,505
Customer 3
81%
43,379
85%
12,633
Total
100%
53,555
100%
14,887
22. Employee benefits expense
Figures in £'000
Group
2024
Group
2023
Wages and salaries
4,708
4,416
Performance based payments
245
522
National insurance and unemployment fund
75
64
Skills development levy
41
43
Medical aid contributions
85
36
Group life contributions
66
64
Provident funds
69
69
Total
5,289
5,214
The average number of employees (including directors) during the year was:
Directors
7
5
Administrative personnel
44
38
Production personnel
423
415
474
458
Directors emoluments
Executive
Non-executive
Total
2024
Wages and salaries
253
–
253
Fees
–
135
135
Other benefits
3
–
3
Total
256
135
391
2023
Wages and salaries
178
–
178
Fees
–
141
141
Other benefits
62
–
62
Total
240
141
381
Emoluments disclosed above include the following amounts paid to the highest director:
2024
2023
Emoluments for qualifying services
190
240
Key management apart from the Directors, the emoluments paid to key management personnel amounted to 2024: GBP735,000
(2023: GBP793,000).
Notes to the Consolidated and Separate Financial Statements
Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
67
23. Administrative expenses
Expenses by nature
Group
2024
Group
2023
Depreciation expense
567
507
Fair value of unlisted investments
62
63
Fair value of Kilimapesa receivable
(113)
97
Accountancy fees
4
5
Loss on disposal of property, plant and equipment
2
3
24. Net Finance costs
Figures in £'000
Group
2024
Group
2023
Bank overdraft and creditors
116
214
Interest on pre-financing of sales
1,604
956
Foreign exchange movement
2,058
(289)
Total finance costs
3,778
881
25. Auditor's Remuneration
25.1 Auditor's Remuneration comprise:
Figures in £'000
Group
2024
Group
2023
– Audit of parent and consolidation
120
115
– Audit of subsidiaries
59
48
– Prior period audit / overruns
89
153
Total auditor's remuneration
268
316
26. Income tax expense
26.1 Income tax recognised in profit or loss:
Figures in £'000
Group
2024
Group
2023
Current tax
Current year
1,533
599
Withholding tax on dividends paid by subsidiaries
58
90
Total current tax
1,591
689
Deferred tax
Originating and reversing temporary differences
80
206
Deferred tax rate adjustment
–
(539)
Total deferred tax
80
(333)
Total income tax expense
1,671
356
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
68
Notes to the Consolidated and Separate Financial Statements
Continued
26.2 The income tax for the year can be reconciled to the accounting profit as follows:
Figures in £'000
Group
2024
Group
2023
Profit before tax from operations
5,993
3,424
Income tax calculated at 19.0%
1,139
651
Tax effect of
Expenses not deductible for tax purposes
424
156
Effect of higher tax levied on overseas subsidiaries
(108)
153
Tax losses incurred on overseas subsidiaries
135
247
Prior year mining tax rate adjustment
72
(898)
Withholding tax on dividends paid by subsidiaries
58
69
Under provision for provisional tax
269
(21)
Tax on capital allowance utilised
(45)
–
Mining tax rate applied
(447)
–
Growth & Sustainability Levy @2.5%
136
–
Non-mining tax gain
38
–
Tax charge
1,671
356
The Group's two main operating and tax paying entities are Goldplat Recovery (Pty) Limited and Gold Recovery Ghana Limited.
During the year the income tax expense increased by 369%. This has resulted in an increase in the effective tax rate from 10.4% to
28%, which was driven by the following:
Ghana:
• Increase in GRG profits before taxation from GBP1,965,000 to GBP5,234,000.
GRG is registered as a Free Zone company in Ghana and was taxed at 15% (2023 : 15%) during the year.
South Africa:
• Decrease in the mining taxation rate from 9.84% for GPL, to 0%, due to a change in the mining tax rate formula and a decrease in
taxable mining profits;
• GPL did incur non-mining taxable income relating to interest on the GMR intercompany loan which was charged at the South
African Company Tax rate of 27%;
Goldplat Recovery (Pty) Limited income tax rate is calculated using a formula tax rate which is calculated using its profit margins
and capital spend during the year. Any changes, year to year, on the tax rate calculated using this formula, will result in changes in
the income tax rate at which it is assessed based on that year's profits, but also will change the income tax rate use to assess our
deferred tax liability.
We currently do not foresee any changes in the income tax rate for Gold Recovery Ghana Limited.
Please note that no deferred tax asset was raised on the tax losses incurred on overseas subsidiaries. A portion relates to GMR of
which the tax rate is 0% and a portion relates to Goldplat Plc where there is no indication of future taxable income.
27. Earnings per share
27.1 Basic earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
Figures in £'000
Group
2024
Group
2023
Earnings used in the calculation of basic earnings per share
4,208
2,798
Weighted average number of ordinary shares used in the calculation of basic earnings per share
167,783
167,783
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
69
27.2 Diluted earnings per share
The earnings used in the calculation of diluted earnings per share are as follows:
Figures in £'000
Group
2024
Group
2023
Earnings used in the calculation of basic earnings per share
4,208
2,798
The weighted average number of ordinary shares for the purpose of diluted earnings per share reconciles
to the weighted average number of ordinary shares used in the calculation of basic earnings per share
as follows:
Weighted average number of ordinary shares used in the calculation of basic earnings per share
167,783
167,783
Adjusted for - Dilutive effect of share options
1,452
1,899
Weighted average number of ordinary shares used in the calculation of diluted earnings per share
169,235
169,682
28. Segment information
28.1 General information
For each segment, the Group's CEO (the chief operating decision maker) reviews internal management reports on at least a quarterly
basis. The following summary describes the operations in each of the Group's reportable segments.
• South African Recovery operations: Includes the recovery of precious metals from metallurgical challenging materials and the
processing of ore, sourced from other mining operations in South Africa. These products often represent an environmental
challenge to the primary producer and are processed in a responsible manner by the company.
• West African Recovery Operations: Includes the recovery of precious metals from metallurgical challenging materials and the
processing of ore, sourced from other mining operations in West Africa as well as South America.
• Administration - Includes activities conducted by holding companies in relation to the group and its subsidiaries.
There are varying levels of integration between the three reportable segments. This integration includes the sale of precious metals
from the Ghana recovery operation to the South African recovery operation, and the supply of goods and services by the South African
subsidiary to all group operations. Information regarding the results of each reportable segment is included below. Performance is
measured based on segment profit before tax, as included in the internal management reports that are viewed by the Group's CEO.
Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the
results of certain segments relative to other entities that operate within these industries.
28.2 Segment revenues
Figures in £'000
Group
Total segment
revenue
Year ended 30 June 2024
South African Recovery Operations
19,342
West African Recovery Operations
53,555
South American Recovery Operations
1,721
Administration and Other
(1,927)
Group revenue
72,691
Year ended 30 June 2023
South African Recovery Operations
26,959
West African Recovery Operations
14,814
South American Recovery Operations
100
Administration and Other
8
Group revenue
41,881
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
70
Notes to the Consolidated and Separate Financial Statements
Continued
28.3 Other incomes and expenses
Figures in £'000
Depreciation
Finance and
Forex cost
Finance and
Forex income
Reportable
segment
profit/(loss)
before tax
Taxation
Year ended 30 June 2024
South African Recovery Operations
(538)
(523)
220
1,308
(96)
West African Recovery Operations
(132)
(3,305)
27
5,234
(1,254)
South American Recovery Operations
–
(19)
–
93
(28)
Administration
–
(143)
(33)
617
(51)
Intercompany trade and consolidation journals
–
122
(125)
(1,259)
(242)
Total other incomes and expenses
(670)
(3,867)
88
5,993
(1,671)
Year ended 30 June 2023
South African Recovery Operations
(469)
(456)
(13)
2,808
96
West African Recovery Operations
(109)
(1,022)
597
1,965
(355)
South American Recovery Operations
–
13
–
(214)
(7)
Administration
–
(154)
–
871
(90)
Intercompany trade and consolidation journals
–
(1)
155
(2,006)
–
Total other incomes and expenses
(578)
(1,620)
739
3,424
(356)
28.4 Assets and liabilities
Figures in £'000
Segment total
assets
Segment total
liabilities
Year ended 30 June 2024
South African Recovery Operations
19,001
7,627
West African Recovery Operations
24,666
21,205
South American Recovery Operations
172
175
Administration
22,156
137
Intercompany trade and consolidation journals
(16,054)
330
Total assets and liabilities
49,941
29,474
Year ended 30 June 2023
South African Recovery Operations
27,124
16,206
West African Recovery Operations
30,550
29,047
South American Recovery Operations
253
492
Administration
21,723
278
Intercompany trade and consolidation journals
(16,166)
208
Total assets and liabilities
63,484
46,231
29. Related parties
29.1 Other related parties
Entity name
2024 Holding
2023 Holding
Gold Mineral Resources Limited
100%
Direct
100%
Direct
Goldplat Recovery (Pty) Ltd
91%
Direct
91%
Direct
Gold Recovery Ghana Limited
100%
Indirect
100%
Indirect
Anumso Gold Limited
49%
Indirect
49%
Indirect
Nyieme Gold SARL
100%
Indirect
100%
Indirect
Midas Gold SARL
100%
Indirect
100%
Indirect
Gold Recovery Brasil Recuperacao
100%
Direct
100%
Direct
Gold Recovery Peru SAC
100%
Indirect
100%
Indirect
GRG Tolling Ltd
100%
Indirect
100%
Indirect
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
71
Major inter-company transactions
Nature of transaction
2024
2023
Goldplat Recovery to Gold Recovery Ghana
Goods, equipment and services supplied
412
679
Goldplat Recovery to Gold Mineral Resources
Goods, equipment and services supplied
–
91
Goldplat Recovery to Gold Mineral Resources
Interest received
(125)
(149)
Goldplat Recovery to Gold Recovery Ghana
Sale of precious metals
203
–
Goldplat Recovery to Gold Recovery Ghana
Management fees
85
–
Goldplat Plc to Gold Mineral Resources
Management fees
272
25
Goldplat Recovery to Aurelian Capital
Trade and other payables
1
1
Goldplat Recovery to Aurelian Capital
Dividends Receivable - Aurelian
164
150
Goldplat Recovery to Aurelian Capital
Management fees
15
17
Goldplat Plc
Directors
135
141
30. Subsequent events
Goldplat plc was involved in a process of arbitration dispute resolution (“ADR”) in Kenya with respect to a claim that was brought
forward against Kilimapesa Gold (Pty) Limited, a subsidiary of Caracal Gold Plc, as agent of Gold Minerals Resources Limited
(subsidiary of Goldplat Plc), regarding the sale of Kilimapesa by Gold Minerals Resources Limited to Caracal Gold in 2022.
Per the ADR, the Company has agreed to settle USD320,000 and has provided for the amount in full as at 30 June 2024. As of
November 2024, the amount owing by Gold Mineral Resources Limited had been settled in full.
GPL terminated the engagement of a number of employees in 2017, after which the company won The Commission for Conciliation,
Mediation and Arbitration (“CCMA”) case. The employees took the matter for review to the Labour Court where the Labour Court
ruled in favour of the employees in July 2024. The Company has subsequently appealed the ruling and awaits the final outcome. As at
30 June 2024, GPL has provided for the possible cash outflow of GBP21,000 post year-end.
Goldplat plc awarded 200,000 restricted shares to each of Brent Doster, Chief Financial Officer and to Douglas Davidson, Chief
Operating Officer on 2 July 2024. The restricted share awards will vest at nil cost to the employee after 1 July 2025 if the individual is
still employed by the Company on that date.
There are no other events subsequent to 30 June 2024 that will have a material effect on the consolidated financial statements.
31. Going concern
The directors have assessed that the Group is able to continue in business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations.
The assessment of the going concern assumption involves judgement, at a particular point in time, about the future outcome of
events or conditions which are inherently uncertain.
The judgement made by the directors included the availability of and the ability to secure material for processing at its plants in
South Africa and Ghana, the impact of loss of key management, outlook of commodity prices and exchange rates in the short to
medium term and changes to regulatory and licensing conditions.
During the period the Group maintained relationships with all our suppliers in South Africa and Ghana for by-product material and
also increased our footprint in the South American market. Further progress has been made in securing additional contracts in West
Africa.
With the secured supplier base and more than 5 years of surface sources on site or on contract, management believes that it will be
in a position to operate sustainably for the foreseeable future.
For the 2024 financial year, the Group achieved positive operating profits. Final results exceeded the previous financial year.
The new TSF was commissioned and brought into use during the period. The new TSF will have sufficient capacity to store the tailings
we will produce in our current operations for the next five years.
Ghana’s EPA and gold export license were renewed in 2023 and are valid for another 2 years.
To assess the ability of the Group to continue as a going concern, management also need to assess GPL’s ability to meet all relevant
covenants, for the foreseeable future, with regards to the South African Rand Denominated bank facility of ZAR60 million.
For the past financial year, GPL met all of its covenant requirements. At the statement of financial position date, GPL still had
GBP0.3 million outstanding on the facility. The facility was repaid in full by 31 October 2024.
The Group Budget was presented to the Board of Directors in October 2024 for approval.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
72
32. Financial risk management
The Group is exposed through its operations to the following financial risks:
• Credit risk
• Interest rate risk
• Foreign exchange risk
• Gold price risk, and
• Liquidity risk
The Group is exposed to risks that arise from its use of financial instruments. This note describes the Group's objectives, policies and
processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these
risks is presented throughout these financial statements.
There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies and processes
for managing those risks or the methods used to measure them from previous years unless otherwise stated in this note.
(i) Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:
• Trade receivables
• Cash and cash equivalents
• Investments in quoted and unquoted equity securities
•
Trade and other payables
• Bank overdrafts
• Floating-rate bank loans
(ii) Financial instruments by category
Financial assets
Fair value through profit or loss
Amortised cost
Figures in £'000
2024
GBP'000
2023
GBP'000
2024
GBP'000
2023
GBP'000
Receivable on Kilimapesa sale (Note 8)
–
–
714
601
Other loans and receivables (Note 10)
–
–
180
164
Trade and other receivables excluding non-financial assets (Note 12)
–
–
21,498
28,935
Cash and cash equivalents (Note 13)
–
–
4,108
2,977
Unlisted investments (Note 20)
–
–
1
63
Total financial assets
–
–
26,501
32,740
Financial liabilities
Fair value through profit or loss
Amortised cost
Figures in £'000
2024
GBP'000
2023
GBP'000
2024
GBP'000
2023
GBP'000
Trade and other payables (Note 20)
–
–
25,944
43,196
Interest bearing borrowings(Note 18)
–
–
296
898
Total financial liabilities
–
–
26,240
44,094
(iii) Financial instruments not measured at fair value
Financial instruments not measured at fair value includes cash and cash equivalents, trade and other receivables, trade and other
payables, and loans and borrowings. Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other
receivables, and trade and other payables approximates their fair value.
Notes to the Consolidated and Separate Financial Statements
Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
73
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group's risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the Group's finance function. The Board receives monthly reports through
which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's
competitiveness and flexibility. Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations. The Group is mainly exposed to credit risk from sales to large refiners and smelters.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only reputable banks in the jurisdiction we operated are used.
Further disclosures regarding trade and other receivables, which are neither past due nor impaired, are provided in note 12.
Cash in bank
A significant amount of cash is held with the following institutions:
Figures in £'000
30 June 2024
Cash at bank
GBP'000
30 June 2023
Cash at bank
GBP'000
Nedbank Limited
111
410
First National Bank Ghana Limited
3,862
2,341
Stanbic Bank Ghana Limited
24
6
BICIAB
–
–
Barclays Bank Limited
3
1
Butterfields Bank Limited
25
–
HSBC UK PLC
10
5
BBVA BANCO CONTINENTAL
63
6
ITAÚ UNIBANCO S.A.
10
–
Cash on hand
–
13
Note 11
4,108
2,782
At the reporting date the board does not expect any losses from non-performance by the counterparties. For all financial assets to
which the impairment requirements have not been applied, the carrying amount represents the maximum exposure to credit loss.
Market risk
Market risk arises from the Group's use of interest bearing, tradable and foreign currency financial instruments. It is the risk that the
fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign
exchange rates (currency risk) or other market factors, specifically the price of gold.
Interest rate risk
The Group is exposed to cash flow interest rate risk from long-term borrowings and finance leases at variable rate. Due to the low net
debt-to-cash and net debt-to-equity ratio the board sees as this exposure to me limited and hence have not fixed any of the variable
rates it is exposed to.
During 2024 and 2023, the Group's borrowings at variable rate were mainly denominated in ZAR.
Foreign exchange risk
Foreign exchange risk arises when individual Group entities enter into transactions denominated in a currency other than their
functional currency. The Group's policy allows group entities to settle liabilities denominated in their functional currency or other
functional currency with the cash generated from their own operations in the respective currencies.
The Group is predominantly exposed to currency risk on purchases and sales made from a major supplier based in USD.
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
74
As of 30 June the Group's net exposure to foreign exchange risk was as follows:
GBP
GHS
Functional currency of
individual entity
ZAR
Total
Figures in £'000
30 June
2024
GBP'000
30 June
2023
GBP'000
30 June
2024
GBP'000
30 June
2023
GBP'000
30 June
2024
GBP'000
30 June
2023
GBP'000
30 June
2024
GBP'000
30 June
2023
GBP'000
Net foreign currency financial
assets/(liabilities)
USD
28
606
12,100
1,454
4,066
10,702
16,194
12,762
Total net exposure
28
606
12,100
1,454
4,066
10,702
16,194
12,762
The Group highest exposure is against the USD, specifically between the USD and GHS, as well as USD and ZAR.
The effect of a 20% strengthening or weakening of the USD against GHS and ZAR at the reporting date on the USD denominated net
foreign currency financial assets/(liabilities), at that date would, if all other variables held constant, will impact on the post-tax profit
for the year and the net assets asset-out below:
GBP
GHS
Functional currency of
individual entity
ZAR
Total
Figures in £'000
30 June
2024
GBP'000
30 June
2023
GBP'000
30 June
2024
GBP'000
30 June
2023
GBP'000
30 June
2024
GBP'000
30 June
2023
GBP'000
30 June
2024
GBP'000
30 June
2023
GBP'000
20% Strengthening of the USD
– Post-tax profit Increase
6
121
2,057
247
733
1,930
2,796
2,298
– Net Asset Increase
6
121
2,057
247
733
1,930
2,796
2,298
20% Weakening of the
USD - Post-tax profit Decrease
(6)
(121)
(2,057)
(247)
(733)
(1,930)
(2,796)
(2,298)
– Net Asset Decrease
(6)
(121)
(2,057)
(247)
(733)
(1,930)
(2,796)
(2,298)
Gold price risk
Some of the Group financial assets and liabilities valuation is link to the price of gold and the future cashflows relating to these
assets and liabilities remain exposed to the fluctuation in the gold price. The Group does not enter into gold contracts to manage the
exposure to the fluctuation in Gold Prices, but aim to settle suppliers at similar gold prices than what it received, where possible. The
exposure to gold price and the level of such exposure will be different from contract to contract.
As of 30 June the Group's net exposure to Gold Price risk was as follows:
GBP
Figures in £'000
30 June 2024
GBP'000
30 June 2023
GBP'000
Financial assets exposed to gold price risk
17,555
27,358
Financial liabilities exposed to gold price risk
(5,348)
(17,942)
Total net exposure
12,207
9,416
The effect of a 20% strengthening or weakening of the Gold Price at the reporting date net foreign currency financial assets/(liabilities)
exposed to gold price, at that date would, all other variables held constant, on the post-tax profit for the year and decrease of net assets
as been set-out below:
Figures in £'000
30 June 2024
GBP'000
30 June 2023
GBP'000
20% Strengthening of the Gold price
– Post-tax profit Increase
2,116
1,709
– Post-tax profit Increase
2,116
1,709
20% Weakening of the Gold price
– Post-tax profit Decrease
(2,116)
(1,709)
– Post-tax profit Decrease
(2,116)
(1,709)
Notes to the Consolidated and Separate Financial Statements
Continued
Introduction
Chairman's Statement
CEO Report
CFO Report
The Board
Directors' Report
Strategic Report
Independent Auditor's
Report
Financial Statements
Goldplat PLC | Annual Report and Accounts 2024
75
Liquidity Risk
Liquidity risk arises from the Group's management of working capital and the finance charges and principal repayments on its debt
instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group's
policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim,
it seeks to maintain cash balances (or agreed facilities) to meet expected requirements.
The Board receives rolling 3 to 6 months cash flow projections on a monthly basis as well as information regarding cash balances.
At the end of the financial year, these projections indicated that the Group expected to have sufficient liquid resources to meet its
obligations under all reasonably expected circumstances.
The liquidity risk of each group entity is managed independently by the entity and Group management. The liquidity requirements
fluctuate continuously based on volume and value of contract signed or in the pipeline, as well as the terms of the contracts.
The liquidity requirements need to therefore be managed per contract and trading requirements and cannot just be forecasted
12 months in advance.
The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities:
At 30 June 2024
Up to 3 Months
GBP'000
Between
3 and 12 months
GBP'000
Between
1 and 2 years
GBP'000
Between
2 and 3 years
GBP'000
Trade and other Payables
25,944
–
–
–
Loans and borrowings
253
43
–
–
Lease liabilities
191
222
254
264
Total
26,388
265
254
264
At 30 June 2023
Up to 3 Months
GBP'000
Between
3 and 12 months
GBP'000
Between
1 and 2 years
GBP'000
Between
2 and 3 years
GBP'000
Trade and other Payables
43,196
–
–
–
Loans and borrowings
213
685
285
–
Lease liabilities
43
94
39
–
Total
43,452
779
324
–
Capital Disclosures
The Group monitors "adjusted capital" which comprises all components of equity (i.e. share capital, share premium, non-controlling
interest, retained earnings, and revaluation reserve).
The Group's objectives when maintaining capital are:
• to safeguard the Group's ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders, and to
• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes
adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares, or sell assets to reduce debt.
Due to the nature of the business the Group’s, the Group's strategy is to preserve a strong cash base and maintain low/negative
debt-to-capital ratios. The cash requirements is managed on subsidiary level based on cash requirements in regards with trading
activities.
As a result, the debt-to-capital ratios at 30 June 2024 and at 30 June 2023 remains negative and were as follows:
Figures in £'000
30 June 2024
GBP'000
30 June 2023
GBP'000
Loans and borrowings
296
1,183
Lease liabilities
931
176
Less: cash and cash equivalents
(3,886)
(2,782)
Net debt
(2,659)
(1,423)
Total equity
20,467
17,253
Debt to adjusted capital ratio
-13%
-8%
FINANCIAL STATEMENTS
Goldplat PLC | Annual Report and Accounts 2024
76
Net debt reconciliation:
Loans and
borrowings
Leases
Cash and cash
equivalents
Total
Net debt as at 1 July 2022
(2,395)
(370)
3,895
1,130
Financing cash flows
–
–
(2,092)
(2,092)
Investing cash flows
–
–
(1,280)
(1,280)
Operating cash flows
–
–
3,343
3,343
New leases
–
(170)
–
(170)
Interest expense
(210)
(23)
–
(233)
Payment of borrowings/leases
1,830
310
–
2,140
Foreign exchange movements
(408)
77
(1,085)
(1,416)
Net debt as at 30 June 2023
(1,183)
(176)
2.781
1,423
Financing cash flows
–
–
(1,273)
(1,273)
Investing cash flows
–
–
(935)
(935)
Operating cash flows
–
–
3,872
3,872
New leases
–
(920)
–
(920)
Interest expense
–
(84)
–
(84)
Payment of borrowings/leases
909
259
–
1,168
Foreign exchange movements
(22)
(10)
(559)
(591)
Net debt as at 30 June 2024
(296)
(931)
3,886
2,659
33. Cash flows from operating activities
Figures in £'000
Group
2024
Group
2023
Company
2024
Company
2023
Profit for the year
4,322
3,068
663
969
Adjustments for:
Income tax expense
1,671
356
58
90
Finance income
(97)
–
(1)
–
Finance Expense
1,818
1,170
–
(31)
Depreciation
567
507
–
–
Impairment of tax receivable
81
–
–
–
Fair value loss on equity instrument
62
63
–
–
Provision for doubtful debt
(86)
–
–
–
Amortisation of right-of-use asset
58
71
–
–
Fair value (gain)/loss on Kilimapesa receivable
(113)
97
–
–
Revaluation of the Environmental asset
186
–
–
–
Profit/Loss on sale of property, plant and equipment
8
2
–
–
Foreign Translation Movements
(909)
284
–
–
Change in operating assets and liabilities:
Adjustments for decrease/(increase) in inventories
4,653
(11,151)
–
–
Adjustments for decrease/(increase) in trade and other receivables
2,941
(21,498)
151
(145)
Adjustments for increase/(decrease) in trade and other payables
(10,619)
31,611
(131)
196
Adjustments for increase/(decrease) in provisions
86
(69)
–
–
Net cash flows from operations
4,629
4,511
740
1,079
Significant non-cash transactions from investing activities are as follows:
Figures in £'000
2024
GBP'000
2023
GBP'000
2024
GBP'000
2023
GBP'000
Acquisition of Right-of-Use Assets
920
170
–
–
Transfers of Right-of-Use Assets to property, plant & equipment
179
230
–
–
Revaluation of Kilimapesa receivable
(113)
97
–
–
34. Ultimate controlling party
Goldplat PLC is a listed entity and the shares are held by various shareholders, none of it more than 30% and therefore, no ultimate
controlling entity exists.
Notes to the Consolidated and Separate Financial Statements
Continued
Goldplat PLC | Annual Report and Accounts 2024
77
General Information
Company Number
05340664
Directors
Werner Klingenberg
Gerard Kisbey-Green
Martin Ooi
Douglas Davidson (Appointed April 2024)
Brent Doster (Appointed April 2024)
Registered Office
Salisbury House, London Wall
London, EC2M 5PS
United Kingdom
Independent Auditors
PKF Littlejohn LLP
15 Westferry Circus
London E14 4HD
United Kingdom
Company Secretary
Druces LLP
Salisbury House, London Wall,
London, EC2M 5PS
United Kingdom
Registrars
Share Registrars Limited
3 The Millennium Centre
Crosby Way
Farnham
Surrey
GU9 7XX
Website
www.goldplat.com
Designed and
printed by:
perivan.com
REGISTERED OFFICE
WWW.GOLDPLAT.COM
Salisbury House, London Wall,
London, EC2M 5PS,
United Kingdom
Email: info@goldplat.com